Refinancing Investment Property Mortgage

I'm now firmly convinced the only way to refinance a mortgage is via a no closing cost option where the broker provides a credit to cover the closing costs with the acceptance of a higher interest rate. People can argue you have to do the full analysis, but who really does that?

Taking the no-closing cost approach makes the financial analysis much simpler. If you can get a lower rate without increasing loan balance and no out of pocket costs, it is pretty much an automatic decision if cash flow is not your primary concern.

That being said I locked this past week on refinancing our latest rental property. We'll be refinancing our 5% 30yr fixed Maturity Sept-2041 loan to a 4.5% 30yr fixed loan with the existing loan balance. I've heard the mortgage approval process continues to get more painful, but Im assuming this will be no worse than when we did the original financing for this rental investment back in August 2011.

Related in Real Estate:

No Closing Cost Loan Example (Nov 29, 2012) I've gotten multiple requests to clarify the recent no closing cost refinance loan I just completed. Its a bit of a vague term and could be done different ways, but the end result is that there are no out of...

3.5% 30 Year Fixed No Closing Cost Refinance (Nov 27, 2012) We finally closed this week on our 3.5% 30 year fixed refinance with no closing costs (no closing costs = a credit from lender/broker large enough to offset refinance costs). It took us over 2 months (67 days from initial...

Appraisal Appeal Unsuccessful (Nov 05, 2012) Not much of a surprise, the appraiser dug in and didn't budge after we submitted our appraisal appeal: Our more favorable comparables were based on county property records. Interestingly the appraiser indicated the MLS data is generally considered more accurate...

Comments (3)


I recently refinanced my primary home from 30 to 20 yrs. Went from 5.5 to 4.0 and it was no closing costs Process took a while and lots more paperwork than before. More questioning of bank transaction and application going from person to person.

How did you analyze that your will be extending the loan maturity from Sep-2041 to Jun-2042 - nine months? Will you be prepaying an additional amount for 351 months to hit the same end date or will you just be extending the term by nine extra payments?

Any reason why you went for a 30 yr @ 4.0 instead of a 15 yr for a lower rate? was it the no closing cost?

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A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
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