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Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
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Topic Author
Oh123
Posts: 109
Joined: Sat May 27, 2017 3:47 pm

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Post by Oh123 »

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Last edited by Oh123 on Sat Apr 02, 2022 12:16 pm, edited 1 time in total.
Surfcaster
Posts: 98
Joined: Wed Oct 03, 2018 1:57 pm

Re: Refinancing rental rate

Post by Surfcaster »

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.
Topic Author
Oh123
Posts: 109
Joined: Sat May 27, 2017 3:47 pm

Re: Refinancing rental rate

Post by Oh123 »

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.
mrsgoldilocks
Posts: 60
Joined: Mon Jun 07, 2021 9:15 pm

Re: Refinancing rental rate

Post by mrsgoldilocks »

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.
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.

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).
IMO
Posts: 1569
Joined: Fri May 05, 2017 6:01 pm

Re: Refinancing rental rate

Post by IMO »

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.
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