I have 2 investment properties in the south suburbs of Chicago and I would like to refinance and maybe take advantage of any cash-out possibility for a new purchase. I have interest rates of 6 and 6 1/2%, but the current lenders tell me that there would be little to gain in a refinance. The initial appraisals were around $70K for each and each have about $45K principal. Any thoughts?
@Dyahanne Ware The lenders you spoke to are correct. A commercial loan is typically 70% LTV and with a $70,000 appraisal you would be able to refinance at $49,000 on each property. You would eat up most of the difference in closing costs so cash-out is not a possibility. The only reason to refinance would be a lender offering you a much lower interest rate.
Thanks....I will just keep plugging along and see what other creative ideas I can find on this site!