There can be many reasons to refinance an investment property – a job change influencing your financial situation, a current mortgage lender’s loan rate that isn’t keeping pace with the competitors, you want to obtain even more real estate, or perhaps some renovations. Even if there isn’t any specific reason you have in mind, it’s always worth weighing the viability of refinancing from time to time. Over the years, loan products have improved. There might be a much better deal out there.
Those considering refinancing their home should also consider how taxes play into the equation, especially with an investment property. If the loan for your investment property is borrowed against that property, you will be able to claim a deduction for any rental expenses that are incurred. So by refinancing an investment property loan, you can potentially claim yourself a sizeable tax deduction.