This week’s question comes from Channa through Ashley’s Instagram direct messages. Channa is asking: I have three rental properties and am looking to refinance them all. Should I do an adjustable-rate portfolio loan on all three or do separate fixed-rate loans on each property?
As real estate investors, we tend to have many different options when financing rental properties. Some, like adjustable-rate mortgages (ARMs), may come with lower closing costs and slightly lower interest rates, while fixed-rate mortgages have slightly higher interest rates but boast the added security of long-term financing for a property or properties. While both have definitive pros and cons, the implications of both types of loans must be understood before you reach the closing table.
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Ashley Care:
This is Real Estate Rookie episode 170. My name is Ashley Care, and I’m here with my co-host Tony Robinson.
Tony Robinson:
And welcome to the Real Estate Rookie podcast, where what we do is we focus on those real estate investors who are at the beginning of their journey. So maybe you’ve got no deals. Maybe you’ve got one or two and you’re looking to scale up. If, so this is the podcast for you because every week, twice a week, we bring you the inspiration information you need to get started. Ashley Care, what’s going on? How are things in your neck of the woods?
Ashley Care:
Good. So today we actually have a question from my DM. So if you want to just jump into it today, we’ll get started. I’m actually excited about this one, because this one, we got to get a little freaky in the spreadsheets as to analyzing numbers, figuring out. So let me pull up the question here. Okay. So this is from Channa Chin, and this is from my DMS on Instagram, at Wealth From Rentals, or you can send a DM to Tony at Tony J…