Refinance an Investment Property
Tap Your Equity to Refinance an Investment Property
Do you want to refinance an investment property in Las Vegas? You should know that it’s different from refinancing of your primary residence.
Generally, refinancing an investment property costs more than a primary property. You are more likely to pay for your own home than another property. This is why you might come across high interest rates, depending on the lender. Nevertheless, this is a good opportunity to obtain additional property and increase ROI.
Going for this option can help you increase the rental income and decrease your monthly mortgage payment. Tapping into equity of your rental property can open other investment doors. And if you’re ready to work for your ROI, it makes sense to refinance loan of an investment property while you can.
All this is possible if you proceed with professional advice. No matter how much research you’ve done, consult with experts in term of investment property loan refinance. The market changes daily and your intentions might no longer be beneficial for you.
If you are ready for loan refinance, here are the most popular options you can make use of:
30-year loan - Do you prefer consistency over easy profit? These 30-year loans are excellent for homeowners that like planning ahead and making long-term investments. This will also work for you if your plans are set in stone and won’t change in the coming years. If you’re planning on moving to a different state, switching jobs, or traveling the world, consider the next option.
15-year loan - You don’t want to be stuck on a loan for a lifetime, right? Are you ready to pay it off as soon as you can? Or maybe make use of low interest rates and loan refinance to invest more? Then the 15-year loan may just as well be the best option for you.
Frequently Asked Questions
What are the documents I need for loan refinance?
You need the following documents to start the process of refinancing:
Proof of income - These document shows that you are able to pay your monthly payment. Typically, a pay stub for the past 30 days is enough of a proof.
Copy of homeowners insurance - A document indicating that you have appropriate insurance coverage on your home.
Copies of your W-2 forms - Besides your proof of current income, this document shows your past history of employment and income.
Copies of asset information - This documents indicates the assets you own, mainly the accounts that contain enough money for closing the loan. Other assets they will look into are statements of savings, 401(k) accounts, and any investments funds you have.
Copy of title insurance: This document allows your lender check your taxes, title names and the legal description of the property in question.
How many times can I refinance my house?
Every state has a limit on how many times you can refinance a house. This is a precaution against borrowers refinancing too many times. Over-refinancing may result in a much bigger debt you might not be able to close.
Although you can refinance more than once, it’s highly advisable that you talk to experts even before your first time. Refinancing doesn’t give you free money. Instead it lends you more money which you’ll eventually have to pay back. As a result, you may end up with a longer payoff term and higher interest rates.
Refinancing should only be done if it makes sense.