We have a condo we used to live in that we have been renting out for the past 3 yrs after we moved into our current home. We refinanced to a lower rate of 4.875% 30 yr fixed mortgage when we moved out and converted it to a rental, which we thought was quite good.
The condo is probably worth about $230K and our mortgage is around $180K. We about breakeven after paying the mortgage, taxes, condo fees, etc. from the rental income.
With rates being so much lower and our financial position much stronger, I'm interested in refinancing to get a lower rate and potentially going to a 15 year.
However, everything I've read suggests its challenging to refi non-owner occupied mortgages and if you do it will be for ~1% higher than an owner-occupied mortgage and require a higher LTV (we probably have about a little more 20% equity in this property which is located in Northern Virginia so the market is fairly strong). We could put additional money down if it was necessary to get into a better rate (and shorter duration) mortgage.
Any thoughts or suggestions on what to do? Most of what I've read suggests just staying put at the current rate, but I feel like I'm missing out on an opportunity of the current interest rate environment.