If you already own a rental property, refinancing your loan could help you lower your interest rate and monthly payment. That means more cash in your pocket every month and a better return on your investment.
Our DSCR (Debt Service Coverage Ratio) loans let you qualify based on the property’s rental income—not your personal income. If your property has gone up in value, rents have increased, or your credit has improved, now might be the perfect time to refinance.
Mortgage Insider Tips – How to get better loan terms
The charts and numbers below are just examples and will change based on the market and your specific situation.
How to Read the Following Matrix:
Numbers in parentheses like (1.250) = good! These are credits that lower your costs.
Positive numbers like 1.250 = fees or points you’d pay to get that rate.
1. Get a Better Rate by Choosing a Longer Prepayment Period
When you refinance, you can choose how long you want to keep the loan before paying it off without a penalty. The longer you’re willing to commit, the lower your rate—and the less you might pay in upfront costs.
For example:
| Rate | 5 Yr PPP | 4 Yr | 3 Yr | 2 Yr | 1 Yr |
|---|---|---|---|---|---|
| 7.25% | (0.156) | 0.494 | 0.569 | 1.344 | 1.844 |
| 7.50% | (0.791) | (0.141) | (0.116) | 0.609 | 1.109 |
| 8.00% | (1.922) | (1.547) | (1.172) | (0.609) | 0.203 |
2. Better Credit and Lower Loan-to-Value = Lower Rate
Two things really help you get a better deal:
So if your credit has improved or your property value has gone up, refinancing can open the door to better terms.
| FICO | <=55% LTV | 60.01–65% | 70.01–75% | 75.01–80% |
|---|---|---|---|---|
| 760+ | (1.375) | (1.250) | (0.875) | (0.625) |
| 720–739 | (1.000) | (1.000) | (0.500) | 0.750 |
| 680–699 | 0.250 | 0.500 | 2.000 | N/A |
3. Strong Rental Income Helps
Lenders look at how much your property earns in rent compared to the mortgage payment—this is called the DSCR. The higher the DSCR, the stronger your deal.
If your DSCR is above 1.25, you’ll likely get the best pricing. If it’s just above 1.0, your options are still good. Below 1.0 means fewer choices and likely higher costs.
Improving rents or lowering operating expenses to increase your DSCR can make your financing dramatically more efficient.
| DSCR | ≤55% LTV | 60–65% | 70–75% | 75–80% |
|---|---|---|---|---|
| ≥ 1.25 | (2.650) | (2.650) | (2.000) | (0.875) |
| ≥ 1.00 | (2.125) | (2.150) | (1.250) | 0.000 |
| < 1.00 | 0.500 | 0.500 | 2.250 | N/A |
4. Interest-Only Option = Lower Monthly Payments
If you want the lowest monthly payment possible, an interest-only loan may be the way to go. You only pay the interest each month for a few years (usually 5 to 10), not the principal.
Key Takeaway: If you make a large extra payment during this interest-only period, your monthly payment will go down—unlike with a regular fixed loan.
| LTV | Adjustment |
|---|---|
| ≤65% | .25 |
| 70% | .375 |
| 75% | .50 |
We’ll walk you through your options and help you structure a refinance that works for your rental property and your goals.
The pricing examples provided are for general informational purposes only and may vary significantly by lender, borrower profile, property type, market conditions, and program specifics. Adjustments for features such as prepayment penalties, credit scores, DSCR ratios, and interest-only options are subject to change without notice.
For personalized pricing and a loan structure tailored to your investment goals, Book a Call Now to review your scenario with one of our licensed mortgage professionals.
A Smarter Way to Finance Rental Properties
Looking to grow your rental portfolio without tax returns?
A DSCR loan might be your ideal solution. These investor-friendly loans qualify based on the property’s cash flow—not your income.
How Investors Turn Flips into Long-Term Wealth
What if you could flip a property and keep it for passive income?
Fix-to-rent loans make that possible—by financing both the rehab and the refinance into a 30-year DSCR loan.
Fix and Flip Loans Made Simple: Fast Capital for Fast Movers
Need quick cash to fund your next flip? Fix-and-flip loans are designed for speed, simplicity, and investor flexibility—no income verification required.
”FMP Mortgage Pros made the loan process seamless! Utilizing my rental income was a game changer—easy qualification without needing to provide personal income verification!”
“Acquisition & Rehab to DSCR, FMP made it seamless.They funded 80% of my duplex purchase and 100% of the rehab. Once the work was done, they refinanced me into a 30-year DSCR loan—lower payment, better cash flow. Smooth and simple!”
“They got my flip funded fast!” FMP delivered 75% of the purchase and 100% of the rehab—right on time for a competitive Fix & Flip. They understood the project, the numbers, and my goals. I made a hefty profit in just a few weeks and I’m coming back for the next one.
”FMP Mortgage Pros made the loan process seamless! Utilizing my rental income was a game changer—easy qualification without needing to provide personal income verification!”
”FMP Mortgage Pros made the loan process seamless! Utilizing my rental income was a game changer—easy qualification without needing to provide personal income verification!”
”FMP Mortgage Pros made the loan process seamless! Utilizing my rental income was a game changer—easy qualification without needing to provide personal income verification!”
