How Do Points Work When Refinancing a Houston Rental Property?

One point equals 1% of the loan amount paid upfront to reduce your rate by ~0.25%. Points make sense if you'll hold the property past the break-even point.

• What to know: Navigate rate options strategically to minimize borrowing costs on your Houston rental portfolio.
• Houston context: Houston's robust rental market and rising property values give landlords leverage when negotiating refinance rates and terms.
• Action step: Never accept the first rate quote. Shopping 3–5 lenders can save you 0.25%–0.5%, which translates to thousands over the loan term.

Bottom Line

Interest rates are just one factor — total cost of borrowing (APR), prepayment flexibility, and loan features matter equally for Houston investors.