Refinance rental from 30-year loan (10% int) to a lower interest
So, I've been locked in with a hard-money lender for a couple of years now. I purchased a couple of properties with them and they funded my deals 70% LTV. Great relationship yet I am thinking of refinancing my rentals into a 30-year loan with a 4-6%. Reason being is a) lower interest, and b) cash flow.
I refinanced one of my properties to a 15-yr (6%), which was great but after thinking about, I should have refinanced to a 30-year. What is the best way to do this?
Can I refinance with another hard-money lender? Or will it have to be with a bank (commercial side)? I know most banks that deal with investment properties they like to lock you in at 15-years but haven't heard of 30-yr.
Thoughts? TIA!
@Bryan Tilos Have you ever considered soft money? Their interest rates are usually in the 6%-9% range and typically consist of some sort of step-up 30 yr. This places you at a slightly lower rate than HML along with a 30 yr term you're looking for, structured of course.
You can find lenders that will lock you in for 30 years. You’ll just have to call around. I wouldn’t want to go back to hard money at 10% either way though. Just my opinion. Good luck!
- Mike
Originally posted by @Khenkis K.:
@Bryan Tilos Have you ever considered soft money? Their interest rates are usually in the 6%-9% range and typically consist of some sort of step-up 30 yr. This places you at a slightly lower rate than HML along with a 30 yr term you're looking for, structured of course.
I have not considered soft money. I'll have to check it out, thanks!