refinancing investment property

[widespreadfan]

I doubt you will get a much better rate at a community bank. That rate is not bad. If you only plan to keep it 5 years the closing costs of refinancing it probably will not make sense from a numbers standpoint.

[Vin100]

I was planning to buy an investment property in cash with the plans on refinancing it immediately, however when I asked the bank about this before buying the property, they told me that one needs to wait for at least 6months holding the property before bank will consider refinancing. Not sure if that applies in your case since you already bought on a mortgage.

[AndreaTownsley]

Originally Posted by Vin100

I was planning to buy an investment property in cash with the plans on refinancing it immediately, however when I asked the bank about this before buying the property, they told me that one needs to wait for at least 6months holding the property before bank will consider refinancing. Not sure if that applies in your case since you already bought on a mortgage.

Yes, this is often known as a “seasoning” period.

[aslowdodge]

Originally Posted by Vin100

I was planning to buy an investment property in cash with the plans on refinancing it immediately, however when I asked the bank about this before buying the property, they told me that one needs to wait for at least 6months holding the property before bank will consider refinancing. Not sure if that applies in your case since you already bought on a mortgage.

Some banks will forgo the seasoning period, but will only loan based on what you paid. If you are planning on increasing the value then doing the loan based on the new value, you will most likely have to wait 6 months.