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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Zoot Allures on December 17, 2020, 01:05:21 PM

Title: What rates/costs are you seeing for cash-out refis on rentals?
Post by: Zoot Allures on December 17, 2020, 01:05:21 PM
Like many others these days, I have the good problem of having a ton of equity in a rental house (in Portland, OR) and am pondering what to do with it: buy another rental, invest in syndications, etc. I was quoted 3% from a mortgage broker for a new 30-year loan, but I'd have to pay something like $10k to get that rate. On the other hand, my credit union will give me a 15-year at 3.25% for about $3500 in costs. (Much higher monthly payment, of course, but I'd still break even with my rental income and I don't need the cash flow.) I have 10 years left on my current mortgage at 3.8%. I know refinancing an investment property can be expensive, and I'm curious to know if others have found it to be worth it. If I didn't have amazing long-term tenants, I might 1031 the house or just sell and take the tax hit, but I'm not there yet.
Title: Re: What rates/costs are you seeing for cash-out refis on rentals?
Post by: waltworks on December 17, 2020, 01:23:53 PM
I don't think I would bother to refi a mortgage at 3.8 that only has 10 years left on it.

-W
Title: Re: What rates/costs are you seeing for cash-out refis on rentals?
Post by: Zoot Allures on December 17, 2020, 01:28:34 PM
I don't think I would bother to refi a mortgage at 3.8 that only has 10 years left on it.

-W

Fair point. I got that mortgage when the house was my primary, and my tenants could very well still be there when it's paid off.
Title: Re: What rates/costs are you seeing for cash-out refis on rentals?
Post by: waltworks on December 17, 2020, 01:33:39 PM
Yeah, just let it ride. There aren't amazing investment opportunities out there right now for the equity anyway.

-W