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- Posts: 98
- Joined: Wed Oct 03, 2018 1:57 pm
Re: Refinancing rental rate
The time to refinance would have been before you bought another house. You won't be able to get better than 3.09 for a rental.
Re: Refinancing rental rate
We were planning to sell the condo and decided to keep it as a rental recently. Looks like I will lose a couple of thousands in interest without refinancing.
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- Posts: 60
- Joined: Mon Jun 07, 2021 9:15 pm
Re: Refinancing rental rate
Yup. 3.09% is hard to beat. It is probably not that much saving on interest because of (1) fee to secure the mortgage and (2) after all, your balance is only 100K and (3) you in fact only have ~8 years left in your mortgage.Oh123 wrote: ↑Thu Jun 17, 2021 2:49 pm I currently live in a condo that has a 15-year mortgage with a 3.09% rate that originated in 2014(100k balance). We are closing on a single-family home on next week and planning to keep condo as a rental unit. I thought of refinancing condo loan to see if I can get a better late. But I am seeing rate is much higher for investment property. We will move out in 3 weeks and will rent out in few months. Is there anything that can be done to get a lower rate? The goal of refinancing is not to improve cash flow, but to save on interest without early payoff.
On the bright side, when your condo is a rental, all your HOA, interest, property tax are 100% deductible. Plus you have depreciation to get better cash flow (even you said it's not your goal).
Re: Refinancing rental rate
Don't think you'll beat a 3.09 rate. Keep in mind, the 3.09 is the non-deductible rate (I'm guessing you aren't itemizing deductions), once you start the rental, it becomes a tax deductible rate.