For Ogden investors who buy, renovate and rent, the rate-and-term refinance closes the loop. It swaps short-term, interest-only debt for a long-term loan that qualifies on the finished property's rent, with no cash out and no personal income review.
In short: LendingStreet's DSCR rate-and-term refinance pays off an existing loan on an Ogden-area 1-8 unit rental, such as hard money, a bridge loan or a maturing loan, with a long-term loan based on rent. Some programs go up to 80% LTV on rate-and-term, and 30-year terms are available. Because Ogden rents are tight against values, the higher leverage of rate-and-term often matters less than making sure the ratio clears 1.0x.
The classic case is the end of a renovation. You bought a central Ogden duplex with a short-term loan, renovated and leased it, and the loan is approaching maturity. A rate-and-term refinance replaces it with a 30-year loan.
Other cases include a loan with an adjustable payment you want to fix, a loan in your personal name you want in your LLC, or a seller-financed note with a balloon coming due.
Because no cash comes out, rate-and-term refinances often allow higher leverage and lighter seasoning than cash-out, which helps when the short-term loan is close to maturity.
Both use the same DSCR qualification.
If you have extra equity but no immediate need for cash, rate-and-term keeps the balance lower and the ratio stronger, which matters in a market where rents are tight against values.
| Feature | Rate-and-term | Cash-out |
|---|---|---|
| Loan pays | Existing loan and costs | Existing loan, costs and cash to you |
| Maximum LTV | Up to 80% on some programs | Up to 75% |
| Seasoning | Often lighter | Varies by program |
| Best for | Exiting short-term debt | Funding the next purchase |
This example is illustrative and not a quote. An investor renovated a central Ogden duplex with a short-term loan. The balance is $310,000, with an interest-only payment of about $2,842 a month. The duplex now appraises at $470,000, and the units lease for $1,400 and $1,350.
A rate-and-term refinance of $316,000 covers the payoff and about $6,000 in costs, about 67% of value. Estimated principal and interest is about $2,156. With taxes of $250 and insurance of $150, the payment is about $2,556 and DSCR is about 1.08x.
The appraisal on a freshly renovated duplex is where the work pays off. Give the appraiser your scope of work, permits and photos, especially for finished basements and new bedrooms. Because Utah does not publish sale prices, recent MLS sales of renovated duplexes nearby from a local agent can help you set expectations.
| Item | Short-term loan | DSCR loan |
|---|---|---|
| Balance | $310,000 | $316,000 |
| Payment type | Interest-only | Principal and interest |
| Monthly loan payment | About $2,842 | About $2,156 |
| Term | Short, with maturity | 30 years |
Seller financing is common in Utah, especially on older multi-unit properties sold by long-time owners. Those notes often carry a balloon after a few years. A DSCR rate-and-term refinance can pay off the note and replace it with a long-term loan. Start early, because the seller's payoff and any recorded trust deed need to be cleared at closing.
Ask the seller for a payoff statement well ahead of closing, and confirm that the recorded trust deed will be reconveyed once the note is paid.
Private lenders and hard money lenders in Utah often record their loans the same way, so the same payoff and reconveyance steps apply when you refinance out of them.
Compare the full monthly payment before and after, including taxes and insurance, and check the DSCR on the new loan. Moving from an interest-only short-term loan to a 30-year amortizing loan often lowers the monthly cost even though principal is now being paid.
In Ogden, where rents are tight against values, rate-and-term is often the safer refinance. Keeping the balance near the payoff, rather than pulling cash, keeps the ratio above 1.0x. If you have several rentals coming off short-term loans, we can line up the refinances together, or look at a blanket loan once you own five or more.
Utah's residential exemption taxes primary residential property at 55% of value, and it can apply to a long-term rental that is a tenant's primary residence. After a renovation, especially if the property sat vacant, check that the exemption is applied on your Weber County tax notice. A missing exemption raises the tax line and lowers your ratio.
Make sure your tenants' leases show the unit as their home; a signed lease is often what the assessor asks for when confirming the exemption on a rental.
We use current leases to figure the ratio, so have signed leases and proof of rent payments. In Ogden, keep your rental business license current. If you finished a basement or added bedrooms, have the permits and final inspections ready for the appraiser.
If a tenant moved in recently, a few months of on-time payments helps. If a unit is between tenants, tell us early; some programs can use a market rent estimate, but a short delay to sign a lease often gives a better result.
Utah refinances are typically closed through a title company. Utah property taxes are billed annually and due at the end of November, so a refinance in the fall may need to collect a full year of taxes for escrow or pay the bill at closing. Bring your most recent tax notice.
If you plan to keep paying taxes yourself rather than through escrow, ask whether your program allows it; many require escrow for taxes and insurance.
Utah has no state mortgage tax, so closing costs are mostly title, recording, appraisal and lender fees.
Our investor loans are business-purpose loans on non-owner-occupied property. Send your payoff letter, leases and property details through the form below, or call (877) 298-1001. We will check whether rate-and-term or cash-out fits better.
Tell us the maturity date on your current loan so we can plan the appraisal and title work with time to spare.
A refinance that pays off your existing loan and closing costs, with no cash out, using a loan qualified on the property's rent.
Up to 80% LTV on some programs, as long as the rent clears the program minimum.
Often, once leased. Seasoning is usually lighter for rate-and-term but varies by program.
Yes. A DSCR loan can pay off a private note or balloon.
It lowers the property tax on long-term rentals in Utah, which improves your ratio.
Ogden requires one for residential rentals. Keep it current.
Yes. The new loan can close in the LLC's name.
A cash-out refinance up to 75% LTV may fit; in Ogden, the rent often limits the amount.
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