Refinance Your Land Loan the Right Way

A refinance land loan can be obtained to save you money or ease your current financial obligations. Here are some tips that can help you find the best refinance land loan deal.

  • Choose between a cash-out refinance land loan and a no-cash refinance land loan. If you are refinancing for lower monthly payments for better cash flow and you land has equity, a cash-out loan is a good choice. This type of land loan will provide you will money upfront. If your land has little or no equity, and you are concerned with getting lower interest, try the no-cash option.
  • If you land is semi-improved, meaning there is electric and sewer access, have the land surveyed to prove it. Banks are more willing to lend for land that can be developed, and may offer lower rates.
  • If your original loan is a raw land loan, draw development plans. Again, lenders see less risk in land that can be developed, and may offer lower interest rates.
  • Opt to pay points upfront. The interest will be lower if you pay a portion upfront as opposed to allowing these costs to be included with the new loan.
  • General borrowing rules apply: monitor your credit, shop around and consider different options, and make sure the payments and interest rate will be lower than your current land loan.


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