If you own one or more residential investment properties, you might be paying more than you have to on your current mortgage(s). With the historically low interest rate environment still in full swing, you may be able to lower your monthly mortgage payment (in some cases, substantially) by refinancing.
In addition, a rental property refinance could also allow you to take advantage of the equity you have built up in your real estate investment(s) by accessing cash and in turn, paying off other higher-interest debts, such as personal loans and/or credit card balances.
Home values are up – and in some areas of the U.S., they are way up, with an average increase of more than 17% between June 2020 and June 2021. Given this growth rate, there are many real estate investors who are currently “equity rich.” So, in addition to a property refinance resulting in a lower mortgage payment, these dollars could also be put to better use elsewhere.
Before you move forward with refinancing the mortgage(s) on your rental property, though, there are some items to consider. These should include:
- Closing costs
- Length of the new mortgage(s)
- Whether or not to also access cash (i.e., cash out)
If you would also like to reduce the amount of time you spend operating your rental properties (along with reducing the size of your payments), now could also be a good time to bring a professional property manager on board.
In doing so, you could delegate tasks like finding and managing tenants, collecting rent, performing regular maintenance, and responding to emergencies. So, if you own residential rentals in Orlando and/or the surrounding Central Florida area, give Incentive Properties a call at (407) 279-1876 or send us an email through our secure online contact form by going to https://incentivepm.com/contact-incentive-properties/ and we will provide you with all of the details you need.