If you want to pocket extra money from your investment property, here is a smart way to do it: refinance the property. The real estate market is in a slump right now, and you would have availed your property at low interest rates, if it was a recent deal. Refinancing it would further lower the rates, which means extra money every month.
Let’s discuss how we can refinance our existing investment property mortgage.
One of the best ways to avail a good refinance deal is hiring a mortgage broker. They are well-versed with prevailing interest rates, and share a good relationship with majority of lenders. They will help you to avail a good refinance deal within few days.
This doesn’t mean you shouldn’t involve in any research. As with anything, a comprehensive research can you help you to stay away from scammers and frauds. Learn as much as you can about how interest rates are determined, what factors affects its movement, and what’s the investment property mortgage refinance process. You research would also involve performing a background check on the broker. Although most are honest and work for commission money, some can dupe borrowers to earn quick money.
If you start the process of refinancing investment property mortgage with sufficient knowledge, the entire procedure would go smoothly, without loosing any money. You goal, since the beginning, should be availing lowest interest rates available in the market. To avail this, you will have to keep a constant watch on current interest rates and track its movements.
If you have good knowledge about current interest rates offered by lenders in the market, you have good tools to negotiate a better deal. If the lender doesn’t agree on your terms, don’t be afraid to turn it down.
To accelerate the process, you can hire more than one broker. They work purely on commission. Hence, you will have to pay only one broker, who gets you the best deal. You can negotiate with brokers as well. For instance, if ‘X’ broker offers you an interest rate of 8%, call up ‘Y’ broker and ask if he can get a better deal than ‘X’. This works really well.
In conclusion, don’t enter any deal without appropriate research. Make sure you know everything about investment property mortgage refinance before you finalize on any lender.