Refinance Calculator

When Should You Refinance Your Investment Loan?

Consider refinancing when rates have dropped significantly since you took out your loan, when your fixed rate period is ending, or when you've built equity and can negotiate better terms. The key is whether the interest savings exceed the switching costs.

Common Refinancing Costs

• Discharge fee: $150–$400 — your current lender charges this to release the mortgage.
• New loan application fee: $0–$600 — some lenders waive this to win your business.
• Valuation fee: $0–$300 — the new lender may require a property valuation.
• Break cost (fixed rate): Can be thousands of dollars — applies if you're exiting a fixed rate before it expires. Ask your lender for an estimate before committing.
• Government fees: Mortgage registration ~$150 — varies by state.

Tax Implications of Refinancing Investment Loans

Refinancing costs on an investment property are generally tax-deductible. The new loan remains fully deductible as long as the funds are used for the same investment purpose. Don't use a refinance to draw equity for personal use — it can taint the loan's tax deductibility. If you increase the loan to fund improvements, only the portion used for the investment property is deductible. Always speak with your accountant before refinancing.