- 1). Gather your rental property documents. Locate your mortgage note to view the interest rate and any prepayment penalties that might be associated with your investment property loan. Review the mortgage note to see whether you have a fixed-rate loan or an adjustable-rate loan. Make a list of your current loan terms to use when comparison-shopping lenders that offer rental property loans.
- 2). Check local newspapers and online lending sources to begin your research for mortgage loans. View community newspapers, as well as national publications to search headings, such as “Classified,” “Real Estate” and “Financial” to find advertised rates for mortgage loans. Use a highlighter or a marker to note attractive offers.
- 3). Call several lenders to discuss interest rates, points and other terms for refinancing your rental property. Narrow your list to five or fewer lenders to work with. Ask each lender to forward a good faith estimate for refinancing your rental property.
- 4). Call the lender that originated your rental property loan. Inquire about opportunities for refinancing your rental property. If you have paid your existing lender as agreed, your lender might provide more attractive terms than competitors in order to retain your business.
- 5). Share your refinancing goals with lenders, such as reducing your mortgage payment or securing a fixed-rate mortgage loan. Use the good faith estimates from competing lenders, as well as offers from your current lender, to help negotiate your loan terms.
- 6). Submit a loan application to refinance your rental property with the lender that has met your requirements. Fax or mail the documents your lender requires to process your refinance transaction, such as loan disclosures, property details, rental income receipts, rental leases, tax returns and bank statements. Typically, lenders want to see liquid reserves to ensure that an investor has capital to account for vacancies or other emergencies, such as property maintenance or repairs. Your lender should provide a detailed list of items needed to refinance your rental property.
- 7). Meet with a settlement officer to endorse your loan documents. You’ll need to sign and date items, such as your settlement statement, mortgage note and other loan disclosures, to finalize the refinancing of your rental property.
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