As the beaches quiet down along the NC coast, seasoned investors are taking advantage of the off-season to refinance and reset for next year.
Refinancing your rental property, especially one financed with DSCR (Debt Service Coverage Ratio) loan, can unlock better loan terms, improve cash flow, and set you up for next season’s success.
In our experience, fall and winter are prime times to get the refinancing process started along the NC coast.
Let’s get into it.
Why Refinance Your Rental Property?
Refinancing isn’t always the right move, but right now, we’re seeing a steady decrease in mortgage rates, causing an uptick in refinance activity, especially down in places like Wilmington, Kure Beach, and Wrightsville Beach.
Refinancing your investment can make sense for several reasons:
- Reduce monthly mortgage payments or lock in better rates
- Rebalance loan terms as market conditions change
- Use updated rental income to qualify more easily
- Strengthen cash flow before next year's prime rental season
TAG Tip: Many investors who initially financed through DSCR loans between 2021 and 2023 are refinancing now to align their loan terms with current rental performance and the evolving DSCR landscape.
“Refinances aren’t just about chasing lower rates. They’re about making sure your loan structure matches your property’s actual income and current market value”- Nathan Jordan, COO, Triangle Appraisal Group
Why the Off-Season is the Smart Time to Refinance
With the slowdown of real estate activity in the winter months along the coast, this season makes for an optimal time to refinance for a few reasons, including:
- Less lender congestion = faster processing
- Lower rental occupancy aids in easier scheduling for appraisals and inspections
- Increased time to gather and prep financials while books are slow
Ultimately, if the market is well-positioned to refinance, it would be great to take advantage of it before the next market shift
TAG Tip: Investors in places like Carolina Beach and Hampstead often refinance between October and February to reset their numbers ahead of the spring rental rush.
The Appraisal's Role in Refinancing
Every refinance starts with an updated appraisal. It’s what gives lenders a current snapshot of your property’s market position and income potential.
A refinance appraisal serves a few critical purposes:
- Determines an updated market value, which your lender uses when evaluating your equity and loan options.
- Verifies rental valuation, especially for DSCR loans, to ensure its calculations reflect accurate income data.
- Provides local market context, which is essential in coastal areas like Wilmington and Wrightsville Beach, where values can vary by street depending on beach access, elevations, and neighborhood amenities.
TAG Tip: What is a DSCR loan? A DSCR (Debt Service Coverage Ratio) loan is approved based on rental income rather than personal income. That’s why the appraisal is vital for these loans. It helps confirm both the home’s market value and rental performance, which directly affects your loan terms when refinancing.
Who's the Best Appraisal Partner When Refinancing My Rental Property?
Whether you are a homeowner or a lender, vetting real estate partners during a refinance is essential. You need to trust the people handling the financial side of one of your most valuable assets-your home or investment property.
Choosing the right appraisal partner is a big part of that process. The appraisal partner you work with can determine how smoothly your refinance goes and how accurately your property’s value and income potential are reflected.
Here’s what sets the TAG team apart as a trusted appraisal partner in the rental property space across Wilmington, Myrtle Beach, Kure Beach, and beyond.
- Local expertise that matters: Our team has been appraising homes across North and South Carolina since 2008. Beyond the NC coast, we cover more than 40 counties across both states, with one appraisal partner delivering consistent, reliable results.
- Experience with investor-focused loans: DSCR loans are becoming a standard financing option for rental properties, and our team handles them frequently. We ensure your appraisal meets lender standards and accurately reflects your property’s cash flow.
- Fast, reliable turnaround times: Most reports are delivered within 3-5 business days after inspection, keeping your refinance on schedule.
Partnering with an experienced, locally focused appraisal team like TAG helps you refinance with confidence, knowing your investment’s value and potential are in expert hands- TAG us in!
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