If you own an investment property, you may want to consider refinancing it to improve the return on your investment or to obtain cash.

There are many reasons why investors want to refinance loans for rental property, including:

Interest rates are still extremely low. If you originally financed your investment at a much higher interest rate, you can lower your interest rate or move from a 30-year to a 15-year loan.

Many investors take advantage of a variable rate mortgage to reduce the initial costs of owning the property. However, if you plan to own the property for a long period and current interest rates are favorable, converting to a fixed-rate loan makes good sense.

If you're planning to sell the property soon and you know you'll sell at or above what you owe on the property, you may want to convert to an interest-only or variable-rate loan. You'll save money with lower monthly payments until the property is sold.

If you want additional cash flow, the right type of refinance will give you the increase in cash flow you're seeking by lowering your monthly payment. In some cases, you may be able to remove the Private Mortgage Insurance (PMI) on your existing loan to lower your payments.

When you hold enough equity in your property, you can obtain a cash-out refinance. You might want to retire debt, buy investment property or make improvements on the property you own.

Refinancing a rental property is different from refinancing a primary residence. Southpoint's experts can help you safely navigate the refinancing process.

Requirements are stricter than when refinancing a primary residence; which include:

♦ Six months of cash reserve
♦ High credit rating
♦ Lower debt to income ratio
♦ Lower loan to value ratio on the rental property

Fannie Mae options may be available to you for up to four-unit properties, which will save you money on your monthly payments.

Our in-house underwriters work hand-in-hand with loan officers to avoid unnecessary delays.

Visit our investor's page or call us at (800) 573-6247 to talk to a lender who has your best interest in mind and will streamline the refinance process.

When you purchase a home as your primary residence, lenders are more trusting that they'll receive the money they're owed. When it comes to a vacation property though, they view a second home mortgage as a larger financial risk. Because of this, lenders tend to impose stricter requirements like:

♦ Six months of cash reserves.
♦ At least a 10 percent down payment.
♦ Higher credit rating is necessary.
♦ Lower required debt-to-income ratio.

These requirements make buying a second home more difficult. But with the right help, your dream vacation property is within your reach. The professionals at SouthPoint Financial Services can help you through the process of buying your vacation property.

Even if you've bought a home before, you may still be unfamiliar with the process of buying a vacation home. Loan documents are difficult to understand and some companies may focus more on profit than helping their clients.

This isn't how we do business at SouthPoint. Our focus is to educate every client who's in the process of seeking a second home mortgage. We also prevent unnecessary delays by having in-house underwriters who work only steps away from your loan officer.

SouthPoint will be with you during every aspect of your home buying journey. If you have questions about second home mortgage rates, debt-to-income ratio or any other inquiry, we'll make sure you don't walk away confused.

If it turns out that you need a real estate agent referral, we'll handle that for you too -- because getting you into your dream vacation home is more important than making a sale. SouthPoint also provides a free worksheet so you know every option in front of you.

Fixed-rate mortgages are popular options for a second home, but it doen't apply to all situations. At SouthPoint, we'll look at your individual circumstances to ensure you get the best deal possible.