Condotel · Rate/Term Refinance
Condotel Refinance Calculator
Quick answer: A condotel rate/term refinance is worth a closer look when the drop in monthly principal and interest earns back the closing costs within a time frame you're comfortable with: closing costs ÷ monthly P&I reduction = break-even months. Condotel lenders set their own rates and maximum loan-to-value, so enter the numbers from your current statement and the new term sheet, and check your LTV against that lender's limit.
Built by Jim Blackburn · NMLS #1072866 · $500M+ closed · 7× Scotsman Guide Top Producer
Enter your current interest rate and the rate on the new term sheet to see your results. The balance, years left, unit value and closing costs start with example amounts; replace them with yours.
Your current condotel loan
The refinance offer (from your term sheet)
Closing costs: lender, title, appraisal and recording charges, minus any lender credit. Leave out escrow deposits for taxes and insurance.
Enter both interest rates
Estimates only — not a commitment to lend or a Loan Estimate. Jim Blackburn, NMLS #1072866.
How Condotel Refinance Break-Even Works
The calculator figures your current principal and interest from the balance, rate and years left, then the new principal and interest on the new loan amount (your balance, plus closing costs if you add them to the loan) over the term you pick. Break-even is the closing costs divided by the monthly reduction. LTV is the new loan divided by the unit's value.
Example: $7,500 in closing costs ÷ a $250 monthly principal and interest reduction = 30 months to break even. If you expect to keep the condotel longer than that, the refinance starts paying for itself after month 30.
What Condotel Lenders Look At on a Refinance
The building matters as much as you do. Because Fannie Mae's guidelines treat projects that operate as hotels as ineligible, a condotel refinance usually goes from one non-QM or portfolio loan to another, and the new lender reviews the project, the hotel operator and the rental program again. Expect questions about the operator agreement, the association's finances and your unit's rental history. Your equity matters too: lenders cap the loan at a percentage of the appraised value, and that cap varies by lender, so compare the LTV in the calculator with the one on your term sheet.
When the Monthly Number Isn't the Main Reason
Some condotel owners refinance to change the structure of the loan, not just the payment: moving off an adjustable rate, getting ahead of a balloon date or switching from interest-only to amortizing. If that's you, the monthly change can be small or even go up and the refinance can still make sense. The lifetime row shows the total principal and interest left on your current loan next to the new loan, so you can see what a longer term costs.
Frequently Asked Questions
When does a condotel loan refinance make sense?
Usually when the monthly principal and interest drops enough to earn back the closing costs before you expect to sell or refinance again, or when you need to change the loan's structure, such as leaving an adjustable rate or a balloon. Run both your current loan and the new term sheet through the calculator to see break-even and lifetime cost.
How do I calculate break-even on a condotel loan refinance?
Divide the refinance closing costs by the monthly reduction in principal and interest. For example, $7,500 in costs divided by a $250 monthly reduction is 30 months. Leave out escrow deposits for taxes and insurance, since you'd pay those either way.
What LTV do lenders allow on a condotel loan refinance?
Each lender sets its own maximum loan-to-value for condotels, and it can depend on the project, the rental program and your credit. Ask for the limit on your term sheet and compare it with the LTV this calculator shows for your new loan.
Can I refinance a condotel loan into a conventional loan?
Only if the project meets Fannie Mae or Freddie Mac standards. Fannie Mae's Selling Guide lists projects that operate as hotels, require rental pooling or offer hotel-type services as ineligible, so condotel owners typically refinance with another non-QM or portfolio lender.
Does rental income matter on a condotel loan refinance?
It can. Lenders that underwrite on the unit's rent will look at the hotel operator's statements for your unit, and even lenders that use your personal income often want to see how the rental program performs. Have recent owner statements from the operator ready.
Should I add closing costs to my condotel loan refinance?
Adding them keeps cash in your pocket but raises the loan amount, the LTV and the total interest you pay. Paying them in cash keeps the loan smaller. Switch between the two options in the calculator to see how break-even and lifetime cost change.
Where do I get rates for a condotel loan refinance?
From the lender's term sheet or Loan Estimate. We don't publish rates because condotel pricing depends on the lender, the project, your equity and credit, and it changes often. Enter your offered rate to compare it with your current loan.
Want Us to Check a Condotel Refinance for You?
Send us your current loan and the building name and we'll look at refinance options for that project and what lenders will ask about the rental program.
- Only 2 minutes to complete
- No credit score impact
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Important Disclaimer
This calculator compares your current condotel loan with a rate/term refinance using the numbers you enter. It is not a Loan Estimate, a rate quote, a loan approval or a commitment to lend. Maximum loan-to-value, rate and terms are set by each lender and vary; use the figures on your own term sheet. Project-eligibility description reflects the Fannie Mae Selling Guide, B4-2.1-03 Ineligible Projects (version dated 08/05/2026), reviewed October 30, 2026. All borrowers must qualify based on lender and property guidelines. Jim Blackburn, NMLS #1072866. Equal Housing Opportunity.