Refinance before investing? - Posted by Bill Zbytowski

Posted by Shaun on June 02, 2006 at 14:12:30:

It will not matter on your investment property. By refinancing, you may be able to lower your debt-to-income by lowering your mortgage payment. How high is high for your interest rate? 100 points will do wonders for a new mortgage depending on where you were at then and now.

Refinance before investing? - Posted by Bill Zbytowski

Posted by Bill Zbytowski on June 02, 2006 at 10:35:50:

Can anyone give me some advise? I purchased a home 2 years ago and because of my lower credit score at that time the
interest rate I am paying is high. Since that time my credit score has incresed almost 100 points. Should I refinance now
before trying to purchase investment property or would this
hinder my chances of getting my investement financed?
I am new to investing and could use some advise from experienced invrstors.

Re: Refinance before investing? - Posted by Chris in FL

Posted by Chris in FL on June 07, 2006 at 14:00:12:

You already have some advice saying to refinance, so I will play devil’s advocate and point out the other side. Your two year old loan has some seasoning, which goes away with the new refi, and it could possibly pull your credit score down some. 100 points may or may not lower your interest rates considerably - you need to check into that with your lender(s). Lastly, will you have to pay closing costs/fees on the refi, and, if so, are the fees more than made up for by the lower rate or not (note that how long you intend to keep the refi loan in place will affect this decision)? Hope that helps. Best wishes!

Re: Refinance before investing? - Posted by Jason

Posted by Jason on June 03, 2006 at 15:04:09:

Regardless of your next investment purchases, if you can save money on your current mortgage, then by all means get it done. The whole point of your investment strategy should be money in your pocket.

By having your credit scores raise by 100 points you could save a considerable amount of money.

This will in no way hinder your chances of obtaining financing for your future investment properties.