Spotting Refinance Opportunities Hidden in Your Investors’ Portfolios

The rise in refinancing is changing the way investors operate today. ICE Mortgage Technology says that 95% of recent rate-and-term refinances were from loans made between 2023 and 2025. Borrowers were able to lower their rate by over one full percentage point and save an average of $200 a month.

This is a big chance for brokers: investors who locked in loans during the peak-rate cycle of 2023–2024 may now cut their monthly payments, boost their DSCR, and make their long-term portfolio perform better as rates keep going down.

Rate predictions for 2026 expect mortgage rates to fall below 6%, which will make the difference between current rates and the large coupons on many 2023–2024 investor loans even bigger. The first brokers to look at these files will be the ones who can help clients save the most, and in turn, close more deals.

The High-Rate Loan Challenge: Understanding the Problem

People who bought or refinanced real estate between 2022 and 2024 experienced some of the highest rates in nearly 20 years. The peak point was in October 2023, when 30-year rates hit 8.45%, the highest level since 2000. Even if rates did go down in 2024, a lot of investors still have private money loans with interest rates of 7.5% to 9% or more.

Market Conditions During Peak Origination Period

The Federal Reserve's rapid rate hikes in 2022 and 2023 made borrowing prices so high that many investors had to choose between paying high rates or missing out on acquisition possibilities. Most people decided to go forward with their purchases, hoping for better refinancing options in the future.

2023-2024 Rate Environment Characteristics:

• Private lending rates peaked at 10-12% for short-term bridge loans
• Long-term rental financing ranged from 7.5-9% during peak periods
• DSCR loan rates exceeded 8% for most of 2023
• Conventional investment property rates consistently above 7.5%
• Rate volatility made timing decisions extremely difficult

December 2025 data shows mortgage rates averaging 6.25%, creating rate differentials of 1.5-2.5 percentage points or more compared to peak-period originations. These spreads could save investors a lot of money each month and help retain wealth over the long term.

Cash Flow Impact on Investment Returns

High interest rates cut into cash flow, lower returns, and make it harder to grow a portfolio. A person who has a $400,000 loan at 8.5% pays around $3,075 a month in interest and principal. If you refinance that same balance at 6.5%, the payment goes down to $2,528, which saves $547 a month or $6,564 a year.

Cash Flow Improvement Calculation Example:

• Original loan: $400,000 at 8.5% = $3,075 monthly P&I
• Refinanced loan: $400,000 at 6.5% = $2,528 monthly P&I
• Monthly savings: $547
• Annual savings: $6,564
• 10-year savings: $65,640 (not accounting for amortization differences)

This better cash flow makes it possible to make renovations to the property, build up reserves, or save up money to expand the portfolio, all of which are important for successful real estate investing.

How Brokers Should Evaluate Refinance Readiness

Use clear metrics to determine whether refinancing makes financial sense:

• Interest-gap threshold: A lot of investor refis look good when the new rate is about 0.75 to 1.00 percentage points lower than their current rate, but be sure to take into account closing expenses and prepayment penalties.
• Prepayment penalty exposure: About one-third of investor loans carry penalties that can vary when the loan breaks even. Make penalties clear when modeling.
• Maturity map: If loans mature or are repriced in the next 12 to 24 months, put those files at the top of the list for review. Timing friction can cause savings to go down if not prepared.
• Equity profile: Higher valuations and good DSCRs make cash-out refis or portfolio restructuring more likely.

Use these metrics to provide refi suggestions that show net-dollar results instead of just percentage changes.

Strategic Refinancing Approaches for Different Scenarios

Investors who want to refinance a high-interest loan need to use different tactics depending on the type of loan, the property, and their goals. There is no single solution that will get the best results for all clients and portfolios.

1. Transitioning from Bridge Loans to Permanent Debt

Investors who received bridge loans in 2023 or 2024 have to deal with high interest rates and loans that are about to mature. If the property is stable, you can refinance into long-term fixed-rate DSCR products that allow:

• Significant rate reduction
• Elimination of extension fees
• Predictable, lower monthly payments

This is a group of people that brokers should focus on. RCN Capital's long-term rental programs make it easy to transition from bridge financing to a long-term loan. Rates start at 5.75% for qualifying properties, which is frequently 3–4 percentage points lower than bridge loan rates.

2. Rate-and-Term Refinancing

Ideal for investors focused strictly on lowering payments without tapping equity. Benefits include:

• Lower monthly P&I
• Reduced long-term interest expense
• Faster underwriting and closing timelines
• Lower costs compared to cash-out refis

This is the most active type of refinance right now. This is because the difference between the rates for loans made in 2023 and 2024 and today's market is only getting bigger.

3. Cash-Out Refinancing for Expansion

For investors whose properties have appreciated since purchase, a cash-out refinance can simultaneously:

• Lower their rate
• Improve cash flow
• Extract capital for down payments on new acquisitions

This method works best for investors who want to establish portfolios with multiple properties. RCN Capital's cash-out refinancing programs provide loan-to-value ratios of up to 80% based on current appraised values. This lets you take out a lot of money while keeping your leverage low.

A Quick Checklist You Can Use This Week

• Pull a maturity map for client accounts (due in the next 24 months).
• Build 3 refi scenarios for priority clients: (a) immediate refi, (b) refi at a 0.50% lower market move, (c) refi at a 1.00% lower market move.
• Validate tax/cash-out implications with the client’s CPA.
• Pre-qualify documents: 2–3 years of tax returns, current rent rolls, P&L statements, and reserve schedules.
• Identify lender channels for agency, non-agency, private, and portfolio structures.

These steps let you act the moment an opportunity window opens.

How RCN Capital Helps Brokers Capture Refinance Opportunities

RCN Capital provides customized refinancing and portfolio solutions for investors. Our programs are flexible enough to handle rate-and-term, cash-out, and portfolio consolidations. When opportunities arise, brokers can use special submission tools, program manuals, and support resources to get things done swiftly. To go over programs, checklists for documents, and lender channels, visit the RCN Capital Website.