The question: “What rate can I expect on refinancing a rental property - 1 percent above par?”

The rate doesn’t have to be effected at all. Simply use the chart below to determine the investment property adjustment or “add-on”…and pay it as discount points directly to the lender. The rate will remain par if you negotiated a par rate in the first place.

Investment Property Adjustments:
< =75% LTV: add 1.5
75.01-80% LTV: add 2.00
80.01-90% LTV: add 2.50

These are only the add-ons for the added risk of investment property.

Of course, you may have additional risk-based add-ons if you intend a cashout refinance over an above what you see here.

For example, if your loan to value is between 60-75%, your credit score is between 600-620, and you're asking for a cashout refinance, the addition risk-based add-on for cashout is 1.75%.

Total add-ons would then be 1.75% plus the investment property add on of 1.5% for a total of 3.25% to get a par rate. You can see as your credit score drops and your LTV rises, the greater the add-on.

(Note: If your credit scores are better, this would lower the add ons so it works both ways. This makes it imperative to know all three credit scores before shopping for a mortgage.

Here is the best way to do that...