Rental Refinance Rates are Soaring

Refinance rates on rental properties have increased substantially thanks to FHFA and the Treasury and the number of lenders even offering refinances on rental properties has dropped substantially to just 4 lenders and us selling directly to Fannie or Freddie. Normally, we have over 20 choices, not anymore.

Besides the 50 bp fee added last fall by FHFA on all refinances I am seeing another fee of 125 bps to 200 bps on all rental refinance loans. OUCH!!! And the lowest fee is our fee when selling directly to Fannie. This is all in response to FHFA’s and the Treasury’s requirement that their share of business on second homes and investment properties must drop to 7% of their portfolio, down from about 11%. It appears the federal government doesn’t want us to lend to people financing rentals or second homes anymore.