Need help finding a good rate for cash-out refi on 4-unit rental

Seeking Advice
1

Hello everyone, I’m looking for advice on finding a competitive 30-year mortgage rate for a cash-out refinance on a 4-unit rental property I own in northeastern Pennsylvania.

The property is well-maintained and valued between $350k and $400k. It’s not my primary residence. I currently owe about $50,000 on the existing mortgage and plan to pay it off, while cashing out the remaining allowable balance. Any tips or recommendations?

2

With a 4-unit rental property, rates are typically higher because it’s an investment property and not a primary residence. What kind of rate are you hoping to secure?

3

Teal said:
With a 4-unit rental property, rates are typically higher because it’s an investment property and not a primary residence. What kind of rate are you hoping to secure?

I was thinking something around 7% or below might be realistic given the current market. Is that too optimistic?

4

@Lennox
What makes you think 7% is achievable?

The rate trackers out there, like the one on Mortgage News Daily, show average 30-year fixed rates around 6.92%—but keep in mind, that’s for primary residences, not investment properties.

5

@Teal
Yeah, I was basing it on those average rates.

6

Lennox said:
@Teal
Yeah, I was basing it on those average rates.

I think you might be misunderstanding how rates are determined.

7

For a cash-out refi on an investment property, you’re likely looking at rates over 7%. Buying points to lower the rate doesn’t make much sense in this market either.

8

Charlie said:
For a cash-out refi on an investment property, you’re likely looking at rates over 7%. Buying points to lower the rate doesn’t make much sense in this market either.

You’re not wrong. Someone is about to make an LO’s holiday season very memorable!

9

@Teal
The market’s taking a hit right now too, so rates are climbing.

10

This might be worth checking out for some insights: https://placehold.co/600x400.png

11

@Teagan
Thanks for pointing that out! I hadn’t come across it before, but I’ll take a look.

12

Interest rates are always tied to risk factors. When you see 30-year fixed rates online, those are typically for single-family homes that are primary residences.

Your situation is different: a multi-unit property that’s also an investment property. These factors add layers of risk for lenders, which means you’ll likely face higher rates than what you see advertised.