How To Refinance An Investment Property

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Thinking about refinancing your investment property in 2024? Smart move! Refinancing can be a fantastic way to lower your monthly mortgage payments, cash out some equity for improvements, or even switch up your loan terms to something that fits your current financial situation better.

Whether you’re a seasoned investor or just starting out, understanding how to effectively refinance your property can make a big difference in your investment strategy.

In this guide, we’ll walk through the steps to refinance, explore why you might consider refinancing, and break down the different types of refinancing options available.

Let’s dive in and get your investment working smarter for you!

Steps for Refinancing Investment Property

Refinancing your investment property isn’t just about filling out some paperwork and calling it a day. It’s a strategic move that requires a bit of planning and smart decision-making. Here’s how you can get started:

Assess Your Current Financial Situation

Before you even think about reaching out to lenders, take a good look at where you stand financially. Check your current mortgage terms, your property’s equity, and your overall financial goals. Are you looking to lower your payments, reduce your term, or pull out cash for renovations? Understanding your goals with your rental properties will guide the refinancing process and help you choose the right option.

Shop Around for the Best Deals

Don’t just go with the first offer you get. Shop around. Talk to different lenders and compare rates and terms. Sometimes, the best deal isn’t with your current lender. Each lender might have different requirements and offerings, so it pays to do your homework and compare what’s out there.

Lock in Your Rate

Once you find a refinance rate that suits your needs, it’s time to lock in your rate. Interest rates can fluctuate, and locking in a rate ensures that you won’t end up with higher rates by the time you close on the refinance. This step is crucial, especially in a volatile market.

Get Your Documents in Order

Refinancing your rental property requires a lot of paperwork. You’ll need to provide documents that prove your income, property value, and investments. This might include tax returns, bank statements, investment records, and more. Having these documents ready for your private lender can speed up the process significantly when you refinance.

Go Through the Appraisal Process

Most likely, your mortgage lender will require an appraisal to determine the current mortgage rate of your property. This value will impact how much you can borrow and the terms of your refinance. Ensure your property is in good condition to get the best appraisal value.

Close on the Refinance

After all the paperwork is done, and the appraisal is in, it’s time to close. This will involve some closing costs, so be prepared for these expenses. Once you close, your new mortgage will take effect, and you’ll start enjoying your new terms.

Navigating these steps can make refinancing your investment property a smooth and beneficial process. It’s about being prepared and making informed decisions every step of the way.

Why You Should Refinance Your Investment Property

Now that you know how to refinance, you might be wondering why you should consider it in the first place. Refinancing your investment property can offer a handful of financial benefits, depending on your situation.

One of the top reasons to refinance is to secure a lower interest rate. If interest rates have dropped since you first took out your mortgage, refinancing could significantly reduce your monthly payments and the total amount of interest you pay over the life of the loan.

For example, let’s say you originally secured a mortgage for your investment property at a 6% interest rate, but now you’re considering refinancing to capture a lower rate and boost your rental income.

If rates have dropped to 4% and you refinance, you could see substantial savings on your monthly payments, freeing up cash flow for other investments or expenses.

Refinancing can also be a strategic move to change the term of your mortgage. Maybe you originally chose a 30-year mortgage but now find yourself in a better financial position and want to pay off your loan faster, especially if it’s for your primary residence or a lucrative rental.

If you refinance to a 15-year mortgage, you’ll pay off your property sooner and save on interest charges in the long run.

Additionally, if your investment property has increased in value, refinancing can allow you to tap into the equity you’ve built up.

This is known as a cash-out refinance, where you take out a new mortgage for more than you owe and get the difference in cash. This cash can then be used to renovate the property, boost its value even further, or invest in additional properties, expanding your real estate portfolio.

While traditional refinancing often focuses on long-term adjustments, at Amplend, we specialize in short-term refinancing solutions for rental properties. These are perfect for investors looking to quickly adjust their financial strategies without the long-term commitment of traditional banks.

Whether it’s lowering your expenses, reducing your loan term, or accessing extra cash, the right refinancing strategy through Amplend can enhance your investment’s profitability and sustainability in a more flexible and dynamic way.

So, if the numbers make sense and align with your financial goals, considering a short-term refinancing solution with Amplend could be a smart choice to help grow your real estate investments.

Refinancing Types: Exploring Your Options

When you decide to refinance your investment property, you have a few different paths you can take. Each option serves different financial goals, so knowing what’s available can help you make the best choice for your situation.

Rate-and-Term Refinancing

This is all about adjusting your loan’s interest rate or the length of time you have to pay it off, or both. If you’re looking to reduce your monthly payments or want to pay off your loan quicker, this could be a good choice.

For example, if you switch from a 30-year mortgage to a 15-year mortgage, you’ll end up paying less interest over time and own your property faster.

Cash-Out Refinancing

If your property has gone up in value since you bought it, cash-out refinancing lets you tap into that extra equity.

You refinance for more than you owe and take the extra cash. You can use this money for making your property nicer, buying more property, or for other big expenses.

It’s a handy way to use the growth in your property’s value to your advantage.

Streamline Refinancing

This option is about making the refinancing process easier and quicker. It’s usually available for government-backed loans and involves less paperwork and fewer requirements, making it an attractive option for those looking to refinance their primary residence or rental properties.

This can be a great choice if you qualify and want to refinance without all the fuss.

Bridge Loans

Sometimes you need a quick financial fix, especially when you’re trying to juggle buying a new property and selling your old one.

Bridge loans help cover the gap. They’re short-term loans that you pay back once you sell your old property.

Each type of refinancing has its own benefits, depending on what you need. Whether you’re looking to cut costs, get some extra cash, or just find a temporary solution, there’s a refinancing option out there for you.

Taking a look at your financial situation and what you want to achieve with your property will help you pick the best refinancing path.


Refinancing your investment property can be a smart move that helps you match your mortgage with your current financial goals.

Whether you’re looking to lower your monthly payments, tap into the equity of your property, or simply find a quicker refinancing process, understanding the different types of refinancing options available is crucial.

At Amplend, we offer a variety of loan programs tailored to meet the unique needs of real estate investors. Our goal is to help you make the most of your investments with flexible, efficient financing options that support your long-term success.

Refinancing isn’t just about getting a better rate—it’s about making strategic financial decisions that enhance your investment portfolio, especially if you’re looking to refinance a rental property.

If you’re thinking about refinancing in 2024, consider how Amplend can assist you in achieving your investment goals. We’re here to help guide you through the process and ensure you choose the best option for your needs

We provide flexible, tailored financing solutions for you.

We believe that by staying true to our values, we can help our clients achieve their financial goals and make a positive impact on real estate communities throughout the nation.