Transform Rental Income With DSCR Refinance Secrets
Real-World Impact and Examples
Consider a scenario where a property owner refinances a rental property with a DSCR of 1.5. This indicates that the property's income is 50% higher than its debt obligations. By refinancing, the owner could negotiate a lower interest rate, reducing monthly payments and increasing net income. For instance, if the original mortgage payment was $2,000 monthly, a successful refinance could reduce this to $1,800, saving $2,400 annually.
According to recent market data, properties with a DSCR above 1.25 are often eligible for more favorable refinancing terms, highlighting the importance of maintaining a healthy income-to-debt ratio1.