What Rates are you getting right now? When Should I refi?

Rental Property Investor · Newport Beach, CA · Member since 2017 · 218 posts · 138 votes

Hey BP! I'm sure everyone is actively watching the news and their impact on mortgage rates.

I'm personally losing sleep wondering if I can save more by waiting, or should I just lock in the rates today.

For those of us with loans that are well above market rate, the question of the day is: Will rates continue moving down from here? Or should a person refi immediately?

Second question that I think would help everyone: if you just got a quote, what was the rate, LTV and lender?

Thanks in advance!

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John MorganPro Member

Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes

@Sean McCluskey

I did a cash out refi on a SFR I own outright in June. My rate for a 15 year loan was 4.125% with 1.9 points. Took 4 weeks to get the cash. Not great, but not bad for an investment loan.

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Manuel Fontan
Rental Property Investor · Miami, FL · Member since 2018 · 7 posts · 4 votes
7y
@Sean McCluskey 30yr fixed, 96.5% LTV, 4.12% APR for a small multi-family. Quoted last week before the Fed cut.
3 Reply
Tobias Stoll
Rental Property Investor · Member since 2018 · 69 posts · 19 votes
7y
@Sean McCluskey
Wait until March next year the market expects for more rate cuts until march... if it is going to happen... who knows...
Just my 2 cents
0 Reply
John Stetson
Contractor · Revere MA · Member since 2019 · 15 posts · 11 votes
7y
@Allan Szlafrok
Fed funds rate is going to zero possibly negative in the not too distant future. The rest of the world is on a kamakazie mission with rates global debt investors have no where to hide with 30 percent of sovereign debt markets with negative yields. These investors are chasing US treasuries. The rally in the bond market reflects this. As the stock market continues to decline which may not happen. However since this rally has been predicated in multiple rate cuts and a China trade deal and all the markets got was a 25 basis point insurance cut stocks will correct to fair value. The money will go somewhere and it is most likely treasuries, putting even further downward pressure on yields.
1 Reply
Javier D.
Investor · FL · Member since 2017 · 266 posts · 220 votes
7y
@Sean McCluske
4.875 on 2 duplexes two loans
30 year fixed. Locked in yesterday
25% down.
0 Reply
Oliver De Ausen
Rental Property Investor · Hawaii & Maryland · Member since 2019 · 31 posts · 24 votes
7y
Wow everyone's rates are great! I am closing tomorrow, locked in a month ago at 5.5% for an investment loan, excellent credit, 30 yr. I shopped about 5 different lenders too...
2 Reply
Tony Kim
Rental Property Investor · Los Angeles · Member since 2018 · 844 posts · 1k+ votes
7y
Currently refinancing my 4 unit and an SFR rental. 3.875% for both, zero points on SFR. Half point on 4 unit.
0 Reply
Alan Grobmeier
Rental Property Investor · Phoenix, AZ · Member since 2013 · 919 posts · 911 votes
7y
I am in the process of doing a cash out refi. I will be getting 4.25%, 1/8 pt, 30 yr fixed, across 4 properties.

I'm doing it now. My reasoning is that if the housing market SLOWS, I might not be able to get the amount of cash out of the properties that I want.

I was half-joking with my broker, telling him this rate MIGHT be considered high in a couple of years. ;-)

I can always go back and refinance (without cash out) if/when we go to ZIRP. ;-)
0 Reply
Account Closed
Kansas City · Member since 2019 · 14 posts · 3 votes
7y
@Javier D.
Who is the lender?
0 Reply
Adrian Jenkins
Member since 2019 · 26 posts · 1 vote
7y
@Sean McCluskey
SFH 20% down 4.1% got approved a week ago, so this was prior to last weeks developments. Can I ask that my bank re-evaluate the rate?
0 Reply
Kalanie Tran
Rental Property Investor · Member since 2019 · 62 posts · 46 votes
7y
@Sean McCluskey just refi for 60% LTBy choice, rate at 4.6% for SFH investment rental. 4.125% for my primary $480k loan
0 Reply
Nicholas BaughmanPro Member
San Diego, CA · Member since 2017 · 61 posts · 20 votes
7y
@Sean McCluskey 3.25 on a VA IRRL 30 year fixed
0 Reply
Aaron Ta
Accountant · Berkeley, CA · Member since 2019 · 8 posts · 3 votes
7y
@Craig Jeppesen do you see potential for another drop in the rate?
0 Reply
Michael Cleary
Rental Property Investor · Baton Rouge, LA · Member since 2018 · 6 posts · 4 votes
7y
@Sean McCluskey
Just locked in 4.75% for 30yr SFR on a cashout refinance to complete a BRRRR. Was 4.875% before fed cut at both lenders I got quotes from.
2 Reply
Craig Jeppesen
Rental Property Investor · Chubbuck, ID · Member since 2018 · 532 posts · 466 votes
7y
Originally posted by @Aaron Ta:
@Craig Jeppesen do you see potential for another drop in the rate?

Probably not. I wouldn’t wait if you are ready to buy or refinance. Of course no one really can predict interest rates. If someone could figure it out they would be very wealthy.

1 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
7y
I'm personally waiting for 15yr 4.25% or less at 75% LTV cash-out on rental houses. No real use for it, but a 'make me move' rate.

Last time I got that was the fall of 2017. In 2012 I leveraged all I could when same as above was for a 30yr and primary 15s were under 3%.

The 10yr t-note (which most determines mortgage rates) yielding only 1.67% now isn't bad. Lowest in recent history was 1.37% in 2016. The 2012 mortgage rate bottom saw a US10YR as low as 1.47%.

But... if the tariff wars, shootings, mean tweets, et al start making credit sphincters pucker, you'll wish ya settled for now. More credit tightening risk than an aw shucks I missed a drop of another 25bps IMO.

2 Reply
Curtis Rasmussen
Member since 2018 · 5 posts · 4 votes
7y
@Sean McCluskey I locked in today on a refi on my primary residence single family home that I will convert to a rental this fall or winter. 89% LTV and an interest rate of 3.75% (down a full point). First Colony Mortgage. It's a no brainer for me to get my monthly payments down and at the same time save tens of thousands in interest over the life of the loan.
0 Reply
Curtis Rasmussen
Member since 2018 · 5 posts · 4 votes
7y
30 year fixed.
0 Reply
Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
7y
on a primary, 3.05% 30yr 25% down.
On an investment property in your personal name, 3.875% 30 yr 25% down.
On a commercial MF loan, 3.65-4.125% for a 5 year, cash-out refi.
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
7y
Originally posted by @Syed H.:
on a primary, 3.05% 30yr 25% down.
On an investment property in your personal name, 3.875% 30 yr 25% down.
On a commercial MF loan, 3.65-4.125% for a 5 year, cash-out refi.

Syed these rates are incredible. I will look into putting financing on a few rental houses. I'll also get a commercial quote for a couple apt bldgs I'm selling.

Are these rate quotes with buydowns at all? Firm quotes? Thanks
0 Reply
Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
7y
Originally posted by @Steve Vaughan:
Originally posted by @Syed H.:
on a primary, 3.05% 30yr 25% down.
On an investment property in your personal name, 3.875% 30 yr 25% down.
On a commercial MF loan, 3.65-4.125% for a 5 year, cash-out refi.

Syed these rates are incredible. I will look into putting financing on a few rental houses. I'll also get a commercial quote for a couple apt bldgs I'm selling.

Are these rate quotes with buydowns at all? Firm quotes? Thanks

No buydowns. But these are also harder for most people unless you are very well qualified.
The 1st loan is through Chase private client. That was actually done before this last rate cut.
2nd loan is for a property in NYC. So prime markets have lower rates.
3rd loan is a Fannie/Freddie small balance loan. Larger loan. Secondary market. High NW and experience.

2 Reply
Sam Adcock
Vienna, VA · Member since 2018 · 7 posts · 2 votes
7y
The day prior to FMOC action, I called LoanDirect to assess rates and costs. Currently, I have a 4.6% loan for a cash-out refi for my primary residence that I used the cash to purchase an apartment complex.
As I learned from the conversation, lower rates were available (even before FMOC lowered prime lending rate) but the cost to secure the lower rates were much higher. I deferred committing until after the fed action. When I called the loan broker back 2 days later, the same rate I wanted was at less than half the cost!
I am now refinancing at 4% for less than $3k on a million dollar loan. My monthly payment will drop by about $800 per month, which means in 4 months I will recover the cost of the new loan
My recommendation: call a loan broker. Check rates, cost to secure the rate you want, along with the monthly note amount.
2 Reply
David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
7y
Originally posted by @Sean McCluskey:
Hey BP! I'm sure everyone is actively watching the news and their impact on mortgage rates.
I'm personally losing sleep wondering if I can save more by waiting, or should I just lock in the rates today.
For those of us with loans that are well above market rate, the question of the day is: Will rates continue moving down from here? Or should a person refi immediately?
Second question that I think would help everyone: if you just got a quote, what was the rate, LTV and lender?
Thanks in advance!

I have a somewhat different take on the refi question.
Remember that early on in any amortized loan, the interest can be as much as 2/3 of the payment amount. Now, that does go down over time, but it will be PAST the mid-point in the lifetime of the loan before the principal portion of the payment exceeds the interest portion and at that point you will likely have paid more than the original loan amount in payments.
When you refinance, you start that process all over again.
For an amortized loan without a balloon, you may want to weigh that against the improvement in cash flow by refinancing.
My colleagues and I are sticking to 20 year or shorter amortizations for new loans and refi's and we try for 7 year balloons where we can for commercial loans. This helps equity build up to make sure refinancing is even an option when that balloon comes due.
Unless your current interest rate is egregious, you may want to consider the total impact versus your overall financial strategy.
My $0.02 ...
1 Reply
Luka Milicevic
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
7y
I recently looked at a refi on my personal residence. 15yr fixed 3.75%.
0 Reply
Kevin Blanchard
Rental Property Investor · NJ · Member since 2019 · 66 posts · 44 votes
7y
@Sean McCluskey I was just approved for a cash out refi, zero points at 3.5%. That is pretty darn good. This was for a single family home. The rates might go down more but they are pretty low now. I don't think you should put off refinancing for a few extra bucks.
0 Reply
Taylor Shaw
Member since 2019 · 1 post · 0 votes
7y
Was just quoted 3.67% Interest, half point to close on a 20 year / 77%LTV REFI. Out the door closing about $1280 with appraisal and I drop from 5.25%, drop PMI + move to a 20 year vs 30. Payment barely changes. 3.20% if I went 15 year. I do owner occupy this 4 unit multi.
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