Close

See current mortgage rates on Zillow Mortgage Marketplace

Refinance Rental Property - Are lenders willing?

Profile picture for evfaithful
My husband owns a home that he bought before we got married. This was his primary residence at the time, but it is too far away for our daily commutes. We tried to sell the home, but weren't able to due to market conditions. We are renting it out now at a loss of about $200 per month, and would like to refinance, as the interest rate on the 30 year loan is 6.5%. Based on our research trying to get quotes from lenders online and through Zillow, it seems like no one is willing to refinance a rental property. Am I getting the wrong impression? Are there any willing and reputable lenders out there? If so, who are they?

Thanks in advance!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

1Yes

May 06 2009 - Saint Louis
 Share
 RSS

Replies (3)

Profile picture for Colorado Mtg Broker
It's not that no one is willing to refinance it, but the guidelines to refinance a rental property are a little squirrly.  Max loan to value with most lenders is 75%.  What is your loan to value?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

1Yes

May 06 2009
Profile picture for MikeEmery
You may not also see any improvement in the interest rate as rental properties have a higher interest rate than your primary residence. What with closing costs and other fees, the savings may be negligible.

But I am not a finance person, so I will defer to the money makers on this one.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

1Yes

May 06 2009
Profile picture for GreatRates
I am afraid it is NOT going to be worth it to you.  At up to 75% Loan To Value you will be at approximately the same interest rate you are now (maybe a tiny bit lower but not enough to make the costs worth it).  At 75.01% to 80% Loan To Value your interest rate will be higher than 6.5% and you can't go over 80%.

So the best I can say is be happy with your 6.5% interest rate and the months/years you have already paid off!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

1Yes

May 07 2009
 
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Have a question? Ask it here.

What's this?
Close

By starting a discussion, you can expect more of an interactive, back-and-forth experience where the conversation can go in many different directions.

Or start a discussion
Related Discussions
Profile picture for Lindsay Scott
DiscussionRefinance Rental Property - Are lenders willing?
  • Last reply by Lindsay Scott
  • May 07 2009
Compare Mortgage Rates

See Saint Louis, MO mortgage rates

Be A Good Neighbor

Zillow® Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy