Thursday, September 29, 2011

Rental Refi

Happy to report that we were able to refinance the loan on one of our rental properties. 

We went from an interest rate of 6.25% to 4.625%, balance of loan increased by about $4000 since we rolled closing costs into the loan balance rather than pay upfront.  Monthly mortgage cost is reduced by @$150.  The refinance costs will be paid for in just over two years.  And as long as we keep the home rented during this time period, the tenants will be paying the costs.

Refinancing this property has been a goal of ours since 2009, when we refinanced our home, but its been difficult because lenders are more stringent on non-primary home loans.  Additionally, we were uncertain as to whether the home would appraise for what we needed. 

Glad to have this behind us and I'm glad that Mr. Sam took the lead on this one (since I normally handle the finances of the rentals and he handles the rest).