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Refi Tracker · 4-factor readiness

Should you refi this DSCR loan yet?

Enter your current loan and the rate you could refi into. This tool scores your deal 0–100 on four factors and shows the exact month your savings pay back the refi cost.

Scores seasoning (you usually need 6 months), equity (how much LTV — how the loan amount compares to the property value — has improved), DSCR (whether the property's rent can cover the loan payment; 1.00 = rent exactly covers it; higher is stronger) headroom, and monthly savings.

Open the refi tracker ↓
80
readiness / 100
41 mo
break-even
$14,287
cash-out capacity
Break-even crossover
break evenmonth 41mo 0mo 120
Projected refi rate7.25% → 6.50%
break-even at month 41 · drag the rate to move it
Live refi readiness engine

80–100 = refi-ready now. 55–79 = worth watching. Below 55 = wait. A rate & term refinance (replace your current loan to change the rate or term, without taking cash out) needs at least 6 months of seasoning; cash-out requires additional equity.

Readiness 80/100 · REFI READY

Current loan & refi
Refinance Decision
REFI READY
$298,583
Payoff today
$304,283
New loan funds at
$0
Cash to you
Borrower readiness 80/100 — seasoning, equity, coverage and saving. Separate from whether the proceeds clear the payoff.
You have equity to pull out. Maximum cash-out: $14,287 (at 70% LTV — 70 cents borrowed per dollar of value).
Refi Math
Current DSCR1.14x
Rent ÷ PITIA today. Above 1.0 = property covers its costs.
DSCR after refi1.14x
Still qualifies after the new payment.
Monthly savings+$3
How much less you'd pay per month vs. your current loan.
Break-even41 mo
Month from which refinancing costs less in total — payments made PLUS the balance still owed, not payment saving alone.
Cash-out capacity$14,287
Max you could pull out at 70% LTV (how the loan compares to property value). Zero if not enough equity.
Seasoning requirementMet (6 mo)
Lenders typically require you to own the property 6 months before refinancing.
What drives the score (4 factors, 25 pts each)
Seasoning25 / 25

8 months owned — meets 6-month DSCR seasoning requirement.

Equity25 / 25

Current LTV supports refi at 75% — no appreciation required.

Rate Incentive15 / 25

Projected refi saves $3/mo — 2271mo break-even on $7825 closing costs.

DSCR Headroom15 / 25

Projected refi DSCR 1.142 — marginal qualifying buffer (1.00–1.25).

How the score works: Four factors scored 0–25 each: seasoning (how long you've owned it), equity (LTV improvement), DSCR headroom (rent vs. new payment), and monthly savings. Cash-out is capped at 70% LTV (loan-to-value); rate & term at 75%. Output from analyzeRefi v11.7.
Or: tap equity without refinancing

Keep your 7.25% first lien. Borrow against the equity.

A DSCR closed-end 2nd lien (the $21B market Angel Oak opened) pulls cash without touching a low-rate 1st lien or paying its prepay penalty. Qualifies on combined DSCR = rent ÷ (1st payment + 2nd payment), CLTV ≤ 75%.

0.97x
combined DSCR
79%
CLTV (cap 75%)
$31,287
max 2nd lien · CLTV-bound
TIGHT
2nd pmt $457/mo

Best when your 1st lien is below market and carries a prepay penalty. Max draw is the lesser of the CLTV room and what combined DSCR supports. Modeled from your inputs — your lender sets the final terms.

Refinance at maturity / ARM reset

When the loan comes due, can the property refinance out?

At a balloon maturity or ARM reset the new loan is capped by both the 75% rate-term LTV and the DSCR floor — whichever binds first. If it can't cover the existing balance, you bring cash to close (the proceeds gap).

$329,375
max new loan · LTV-bound
$31,287
cash-out available
$2,082
new P&I / mo
CLEARS
vs $298,088 balance
DSCR covenant · BREACH

Measured DSCR 1.14x is below the 1.20x maintenance covenant — a technical default even if payments are current. Expect a cash-flow sweep, cure period, or paydown demand.

Max new loan = lesser of the 75% rate-term LTV and what the DSCR floor (1.00x) supports at the projected 6.5% rate. Covenant test uses current rent ÷ current PITIA. Modeled from your inputs — your lender sets the final terms.