Financing my STR as an LLC

[Yancey Sanderson]

We purchased our first investment property last May. We closed on a STR condo with a 5 year variable rate loan at 5.25%. I recently found a lender willing to refinance with a 20yr locked rate at 3.25%. Because there is so much uncertainty about rates, I really want to get out from under that variable rate.

We have also just hired our first tax consultant. He recommends holding the condo in an LLC. It is just under out name right now.

I asked the mortgage lender about this and he said they do not offer loans on LLCs. He said we would have to find a lender that offers a commercial loan.

If this was your property, would you continue with the refinance at the great locked in rate or move forward with forming the LLC and look for commercial loan? Are there other options that I should look into?

Thanks for any help you have.