Author Topic: What rates/costs are you seeing for cash-out refis on rentals?  (Read 198 times)

Zoot Allures

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What rates/costs are you seeing for cash-out refis on rentals?
« 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.
« Last Edit: December 17, 2020, 01:18:35 PM by Zoot Allures »

waltworks

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Re: What rates/costs are you seeing for cash-out refis on rentals?
« Reply #1 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

Zoot Allures

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Re: What rates/costs are you seeing for cash-out refis on rentals?
« Reply #2 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.

waltworks

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Re: What rates/costs are you seeing for cash-out refis on rentals?
« Reply #3 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