Time to refinance your investment properties?

Refinancing is not just for homeowners. If you have a portfolio of investment properties, you might be leaving money on the table if you don’t investigate the options. At the heart of the matter, an investor refinances a portfolio of properties for the same reason a home owner would his house – to save money.

Maybe when you took out that investment mortgage your credit wasn’t great and neither was the interest rate you ended up with. As time goes by, you get used to paying it and may be under the impression that fooling with a refinance isn’t worth the effort. Au contraire, mi amigo, au contraire. If you’ve been making your mortgage payments on time over the span of a few years, there’s a good chance your credit rating has improved, which will likely make the lender take a look at helping you out with a lower rate.

There’s also a good chance interest rates have come down since you bought investment properties. Even if you signed onto a bad loan, there’s still hope. Maybe it’s time to seek out a portfolio lender. A portfolio lender, usually a Savings & Loan institution but sometimes a bank, originates loans not for resale in the secondary mortgage market. The rates they offer might be more appealing than a traditional bank and, due to the fact they didn’t participate in the mortgage meltdown, they’re are probably not being bailed out by Big Gov.

Investors often avoid refinancing simply because it seems like too much trouble. Trust us, it’s not too much trouble. It’s well worth the effort to explore all your options. The reason you bought investment properties in the first place was to make a profit, right? Can’t do that if you’re paying more than you should for your loan.

The Creating Wealth Team

Creating Wealth Show logo 2015

Flickr / NCinDC