Go Back To Search Results Question What is the best way to refinance my rental property? We recently moved and because we were unable to sell our home, we decided to rent it. We were unable to refinance at the interest rate we wanted because it is now a rental property. We would like to lower our monthly payment, but have heard that many banks won't give you a decent rate on a rental. Any ideas? By runnermom Posted on 05/10/10 Total Answers 2 Answers- Banks will not give good rates on investment properties because they are a higher risk. Individuals will stop paying a mortgage on an investment home long before their regular bills. You can "move back in." Or see if you can get a better mortgage using it as a second home vice rental investment property. Find a mortgage lender vice a mortgage broker - they will have more products and can find niche products suited to your needs. Best of luck to you. Answer by : Chris On Date 2010-05-10 16:12:16 A previous answer said: "Find a mortgage lender vice a mortgage broker - they will have more products and can find niche products suited to your needs." This is the most ridiculous answer I have heard in a while. First of all, there is no lender or broker that will have any different programs on an investment property, it's straight-forward, cut and dry. Whatever the par rate is on a primary residence, just add 1.75 points to the fees and be at 75% or under on loan to value. and that is the pricing for an investment property. It;s untrue that the rates are higher, it's the discount points or fees that are higher. There is also no way that a lender has more program options than a broker, that's just plain wrong. A broker has multiple lenders at his/her disposal and they all offer different rates, programs/fees. Lender such as B of A has what B of A offers only, while any good broker has B of A as a wholesale investor along with 40-50 others. I really wish people on YA that don't know what they are talking about would stop giving terrible advice. Answer by : GVD On Date 2010-05-10 17:18:56   Go Back To Search Results