Refinancing is not just limited to you home mortgage. You can also consider refinancing your investment property as well. This article is written for those who want instruction on how to refinance rental property. There are a lot of reasons that you may want to consider refinancing your rental property. I want to talk about refinancing to change your interest rate from an adjustable rate mortgage (ARM) to a fixed interest rate mortgage.
Not all ARM’s are continuing to escalate with the interest rate. Some of the ARM’s have a cap on the amount that you pay. A lot of investors financed with an ARM. This was the mortgage of choice for investment property before the crisis hit. Now, ARM’s have changed along with the mortgage industry and you may want to get a fixed rate mortgage through a refinance loan. If you are eligible for a refinance, it may benefit you to do so.
The market is not stable right now. There are no predictions that ARMs will drop, stay the same, or go up. The rates on ARMs can change overnight and if you have the qualifications to refinance it would probably be a good idea for you to do so. Refinance will cost you when you make the initial investment in a fixed rate. However, you should make up the difference in the costs if you own the rental property for a long enough period of time after you refinance. The instructions below were written to help you through the refinance process. Find all the documentation that you can on your income, rental information, debt, and mortgage information.
Step 1: There is an organization called Wachovia who works with Wells Fargo to refinance properties. The phone number is 888-446-2350. They have stated the charges range from $2,500 to $3,000. Your situation will determine the rate that you pay.
Step 2: Call other mortgage lenders who specialize in refinancing. You don’t have to just go with the recommendation in step 1. You might call local banks, credit unions, even the lender who has your current mortgage.
Step 3: If you have been unable to secure a lender, Wachovia and Bank of America specialize in the refinance loans and will be glad to send you an application to begin the refinance process. You might be surprised. You may have the qualifications that are needed to change your ARM into a fixed rate mortgage.