What is an investment property refinance?

Similar to how you would refinance your primary home you can refinance an investment property, which includes one- to four-unit residential properties. Refinancing might be a good option if you’re to convert your home equity into cash or change your loan term. Contact a mortgage loan officer to discuss investment property refinance rates or use our mortgage refinance calculator to determine if refinancing makes sense for you.

Run the numbers

Learn how you can benefit from refinancing your investment property.

When you refinance, there are several benefits you may be able to take advantage of – like changing the terms of your loan, for example. You can also use the equity to make repairs and improvements. Here are three reasons to consider refinancing your investment property.

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Cash out equity.

Cash-out refinancing for an investment property allows you to borrow against the equity for cash at closing. You can reinvest the cash into the property to make improvements or use it for a variety of other things, including:

  • College tuition
  • A down payment on a vacation home
  • Retirement savings
  • To consolidate credit card debt
  • Medical costs
  • Wedding expenses
  • A vacation
  • A new car or boat
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Change the loan term.

If you don’t mind a larger payment, you may want to shorten your loan’s term. This can help you save money on interest and pay off your mortgage much quicker. You can also extend the repayment of your loan by lengthening the term. This will likely lower your monthly payment.

Another option is to refinance from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice-versa. ARM loans can save you money on your monthly payment early on, but once the introductory fixed-rate period ends, your interest rate and payment may increase. Switching to a fixed-rate mortgage can protect you from future rate increases. If you plan to sell your investment property in the next few years, switching to an ARM loan may be an option for you. It could lower your rate and monthly payment until the introductory fixed-rate period ends or you sell the property.

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Cash out equity.

Cash-out refinancing for an investment property allows you to borrow against the equity for cash at closing. You can reinvest the cash into the property to make improvements or use it for a variety of other things, including:

  • College tuition
  • A down payment on a vacation home
  • Retirement savings
  • To consolidate credit card debt
  • Medical costs
  • Wedding expenses
  • A vacation
  • A new car or boat

We offer a variety of refinancing options and are ready to help you find the right choice for your needs. Contact a mortgage loan officer to learn more about your mortgage options for your investment property refinance.

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Disclosures

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.