Are you aware that you may be able to recast your investment property mortgage?
A mortgage recast is when you make a lump-sum payment toward the principal balance of your loan. Your lender will then re-amortize your mortgage with the new (lower) balance. The idea is that you can lower your monthly payments since your principal went down, but your interest rate and term remain the same.
$250,000 original mortgage
$215,000 balance remains
Cash flow $370
Say there is $50,000 to put toward the principle
New balance after recast is $165,000
PITI goes to $1,169
Cash flow goes to $826
Cash flow improvement is $456/mo, annual $5,472
The $50,000 used to recast the mortgage earns 10.94%!
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