DSCR rate-and-term refinance
A rate-and-term refinance replaces your existing rental loan with a new one without pulling cash out. Investors use it to lower the payment, move off a short-term loan, change the loan structure or remove a co-borrower.
Who this is good for
- Investors who financed a purchase with a short-term or renovation loan and need long-term financing
- Owners who want a more predictable payment structure
- Owners moving a property from their personal name into an LLC (with lender approval)
- Anyone whose current payment makes the rent math too tight
Investment property only
This is a business-purpose loan for non-owner-occupied investment property. You cannot live in the property. GoDSCR is a mortgage broker: we arrange and shop financing from wholesale lenders, and every loan is subject to the lender's underwriting and approval.
How it works
Tell us what bugs you about the current loan
Payment too high? Balloon coming up? Adjustable payment making you nervous? The goal of the refinance shapes which programs make sense.
Compare the full cost
A refinance has closing costs. We help you see how long it takes for the monthly savings or improved structure to pay those back.
We shop wholesale lenders
We collect options from multiple wholesale lenders and lay them side by side in plain English.
Close
Appraisal, underwriting and closing follow the same path as a purchase, usually with fewer moving parts.
What to expect
- A current mortgage statement and payoff information
- Your lease and proof the rent is being collected, if rented
- An appraisal with a market rent estimate
- Insurance and tax documents for the property
Watch-outs
- Make sure the savings outweigh the closing costs over the time you plan to hold the property.
- Read any prepayment terms on both the old loan and the new one.
- A longer term can lower the payment but increase the total interest paid. Decide what matters most to you.
Questions about dscr rate-and-term refinance
What is the difference between rate-and-term and cash-out?
Rate-and-term pays off your existing loan and closing costs with little or no cash back to you. Cash-out gives you extra money above the payoff.
Can I refinance out of a short-term renovation loan?
Yes. That is one of the most common reasons first-time investors use a DSCR refinance once the property is fixed up and rented.
Will a refinance restart my loan term?
Usually yes, since it is a brand-new loan. Some programs offer shorter terms or different structures; we will walk through them with you.
Other ways we can help
First rental purchase loans
Buy rental #1 (or #2, #3...) using the rent the property can earn to help you qualify.
DSCR cash-out refinance
Tap the equity in a rental you already own and put it toward the next one.
Short-term rental loans
Financing for vacation and nightly rentals, where income is evaluated differently than a 12-month lease.
2-4 unit rental loans
Duplexes, triplexes and fourplexes: several rents under one roof and one loan.
Ready to line up rental #1 (or #2)?
Tell us about the property. We will shop wholesale lenders for a business-purpose DSCR loan and walk you through every step in plain English.