DSCR rates may be about to move in your favor.
Trying to time your refinance just right? That’s like trying to call the bottom of the stock market. It’s risky, frustrating, and nearly impossible. With that said, if you own single-family rentals, the next few months could offer the best opportunity in years.
What’s Going On With Rates?
Most DSCR loans aren’t tied to the 10-year Treasury (the one everyone talks about). They follow the 5-year Treasury yield. As of mid-2025, it’s hovering around 4%, but some forecasts project it could drop to 2.07% by year-end.
That should mean lower DSCR rates. So why haven’t lenders cut pricing? Two words: market volatility. Many have widened margins to hedge risk instead of passing along savings.
When Will DSCR Rates Actually Drop?
Historically, DSCR rates track closely with the 5-year Treasury, but only when markets are stable. Now that securitizations are picking back up, rates could slide another 30 basis points if yields settle around 3.6–3.7%. Translation? If you’ve been waiting for the right moment, It’s almost here.
Should You Refi Now?
YES, if you:
- Locked in a high rate in 2022–2023.
- Want to cash out equity or stabilize payments.
- Have a balloon payment or loan maturity looming.
WAIT, if you:
- Recently locked a decent rate.
- Face steep prepay penalties.
- Are holding out for a bigger drop.
Why DSCR Still Wins
Scaling with bank loans? You’ll hit a wall. DSCR loans skip the tax returns, W-2s, and income checks. There’s no cap on property count, no credit reporting, and appraisal waivers are often available, making them ideal for serious investors.
Be ready. Not reckless. Refinancing isn’t about chasing rates; it’s about strategy. Know the numbers. Watch the bond market. And work with a lender who gets investors like you. Call (410) 883-8493 or visit dominionfinancialservices.com to get started. Don’t forget to ask about our DSCR Price-Beat Guarantee!
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