A RENTAL PROPERTY CAN offer income, but your loan could be limiting rental income profits. If you’ve been stuck with a high interest rate or don’t have the cash on hand to jump on another investment, refinancing a rental property may be the key to opening up even more financial opportunity.
On the surface, refinancing a rental property isn’t much different from refinancing your home. But some important distinctions apply. Before you get started refinancing your rental or investment property, here’s what you should know.
When Should You Refinance a Rental Property?
There are a few reasons refinancing a rental property might make sense. Interest rate is usually the primary concern. If you have a high interest rate and can refinance for a lower rate, it’s worth considering, says Andrew Helling, a licensed Nebraska real estate agent and owner of REthority.com, an online resource for real estate professionals and their clients.