Should You Refinance Multiple Rental Properties At Once?
As interest rates continue to go down, many homeowners are trying to refinance their homes. As a landlord, you may also want to think about refinancing your rental property. However, if you have several places, should you refinance them all at once?
Here are some reasons why you may want to refinance multiple properties at once.
- Lower interest rates. If you are able to pay less each month on your rental properties, this can only mean more money in your pocket. However, it may also allow you to continue to pay your current monthly mortgage, and pay your property off faster than you ever imagined!
- Extra cash in your pocket. You may also want to look into a cash-out refinance, where you can refinance your properties and get some extra money in your pocket. You can use this to pay off some of your other debts, or you may even want to remodel your properties.
- One payment each month. If you have multiple mortgages, you are going to be writing several checks a month. If you put them all together, you are only going to have write one check a month. Paperwork is much easier when you only have one big bill to pay each month.
Here are some reasons why you may not want to refinance multiple properties at once.
- Not eligible. If your credit score isn’t high enough, you may not be able to refinance any of your properties. Equity is also important. You may not have enough to allow yourself to do any refinancing.
- Better to pay one off. There are times when it is in your best interest to pay off one loan first. Many will recommend a cash-out refinance to pay off one of your mortgages instead of refinancing them all.
If you are thinking about refinancing your rental properties, you should talk to your lender. He or she will help you decide whether or not it is a good idea for you.