Refinancing changes more than the payment
A larger loan can release equity while weakening both rent coverage and monthly cash flow. Enter the proposed appraised value as the property value, use your post-refinance equity as the percentage, and test the lender’s written rate and term.
Read the two ratios separately
The lender view compares gross rent with principal, interest, taxes, insurance and association dues. The investor view applies vacancy, management, maintenance and reserves before debt. Passing one does not guarantee passing the other.
Before accepting a quote
Replace the example rent with the figure the lender will accept, and include points, closing costs, reserves and any prepayment penalty outside this screen. Use the cash-out refinance calculator to compare the new payment with the loan you already have.