How Long After Renting Can You Refinance?

It's advisable to work with your initial mortgage lender when refinancing.

Speed and Savings

Savings can be big if you refinance.

Refinancing on a rental property can be done quickly. Certain rules apply when refinancing on a residential property, but they often don't hinder the process. In fact, it's possible to save money by refinancing "to a fixed-rate loan while mortgage rates are still low," according to Mortgage QnA.

Low Rates Aren't Guaranteed

Working in a salaried position can open the door to a lower interest rate.

Even if negotiations are possible, you can expect to pay at least "1 percent or more on a rental property refinance" than on a residential mortgage refinance, warns Mortgage QnA. In addition, you may end up with a higher interest rate anyway "if you are self-employed" and receiving "a stated income."

Bottom Line

Inquire with a lending professional about refinancing.

There's no stated period of time you need to wait to refinance after renting. There can be perks to refinancing, although salaried borrowers have a much better chance at receiving a lower interest rate than do self-employed people. But "because FHA loans are insured by the U.S. federal government," they're often "easier to qualify," according to Mortgage QnA.

References

• Mortgage QNA: Refinancing on a Rental