Restructure a rental loan, keep the equity
A rate/term refinance swaps the current loan on a rental for a new one with a different rate, term or structure, without taking cash out beyond limited closing costs.
Not every refinance is about pulling cash. Investors refinance to move from an adjustable structure to a fixed one, to replace a short-term loan with a long-term one, to remove a co-borrower, to move title into an LLC, or simply to lower the monthly payment so the property breathes easier.
The test is straightforward: does the new payment improve the property’s position enough to justify the cost of refinancing? Run the current numbers and the proposed numbers through the calculator side by side. If the ratio barely moves, the refinance may not be worth it. If it moves a lot, you have a strong case.
We will be candid with you if a refinance does not pencil. Our role as a broker is to show you what wholesale lenders can offer and help you decide, and sometimes the right decision is to wait.
How it works in the app
Capture today’s loan
Note your current balance, payment and terms from your latest mortgage statement.
Model the new loan
Enter a rate you want to test in the calculator and compare the ratio to today.
Check the costs
Weigh closing costs against the monthly improvement to estimate your break-even point.
We compare programs
We shop wholesale lenders and lay out options so you can decide with real terms in hand.
What wholesale lenders look at
Every program is different. These are the factors that come up most often, described in plain English.
Payment improvement
How much the new payment changes your monthly coverage and cash flow.
Prepayment terms
Investor loans often carry prepayment provisions. Know yours on the current loan and on any new one.
Closing costs
Refinancing is not free. A short break-even period makes a stronger case.
Vesting changes
Moving title into an LLC may require entity documents and lender approval.
Questions about rate/term refinance
What is the difference between rate/term and cash-out?
A rate/term refinance changes the rate, term or structure of the loan without taking meaningful cash out. A cash-out refinance increases the balance and pays you the difference.
Will a prepayment provision on my current loan matter?
It can. If your existing loan has a prepayment provision, the cost of exiting early should be part of your break-even math. Check your note or ask your servicer.
Can I move the property into my LLC while refinancing?
Many investors do. Wholesale lenders handle vesting changes differently, so mention it in your scenario and we will match programs accordingly.
More answers on the FAQ page.
Other ways we can help
Ready to see what your rental can support?
Build a scenario in a few taps, then send it over. A Loan Daddy loan specialist reviews it and shops wholesale lenders for you.