Author Topic: RENTAL property refinance  (Read 1561 times)

Offline Compressed-Village

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Re: RENTAL property refinance
« on: July 21, 2021, 07:24:14 PM »
I have a Rental property with these stats:

Loan: $570,000 @ 3.5%
After 8 years, loan is @ $470,000.
Approximate interest paid after 8 years $146,501
Total interest to be paid after 30 years on a $570,000 loan @ 3.5% is $351,440.
So if I continue paying for 22 more years I will pay (351,440 - 146,501) $204,939 more in interest.
Monthly payment: $2,560

I looked at lenderfi and owning and they show I can refinance the rental property as follows:
Loan: $470,000 @ 3.25%
Total interest paid after 30 years on $470,000 loan @ 3.25% is $266,369.
Monthly payment: $2,045

So I can lower my monthly payment by adding 8 more years to my loan which adds another (266,369- 204,939) $61,430 in interest expense.

Is my math right?  Would you refinance and put the extra $500/month into the stock market?

What I did is not worry about the pay off, rather refi with the lowest rate for the longest because this is a rental.

Keep the cash cushions and invest in a safe liquid positions like, so the risk should very low on this position as you will need it to cover operating expense of this rental.

You are practically getting a free loan with these high ass inflations.

Go long and go strong.

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