Refinancing is a smart move given your current 9.5% interest rate. At a $350,000 valuation, your current debt-to-value ratio is approximately 77%, which is within a range that may qualify for competitive investment property loan products.
Current Financial Snapshot
| | |
| :--- | :--- |
| Current Rent | $2,800/mo |
| Mortgage Balance | $270,000 |
| Interest Rate | 9.5% |
| Estimated Value | $350,000 |
Refinancing into a lower rate would immediately improve your cash flow. If you can secure a rate closer to current market averages, your monthly debt service will drop significantly, increasing your net monthly income beyond the current spread.
Since the property is already fully renovated and currently rented, you are in a strong position for a 'rate and term' refinance. Consult with a lender specializing in non-owner-occupied investment properties to compare the costs of closing versus the long-term interest savings.