Good evening everyone - I would like to know if anyone has been able to refinance during this pandemic? Im in the middle of a rehab and will be looking to refinance in several weeks but unable to find a lender that’s offering a 30 year p&i product. If anyone has any suggestions, I would love to hear it!
Savannah, GA · Member since 2016 · 58 posts · 108 votes
6y
@Monte Watson I closed one at the end of February and I am working on one right now which should close in the next 2 weeks. Just like @Yoni Benimetzky said it is still available but more costly (rates, points, etc...).
@Estrella Carolina Mckinney, reach out to PennyMac. They weren't able to help me due to the price of my loan but they maybe able to help. Give them a call and see if your circumstances fit one of their products. Also reach out to LendingOne, they're offering bridge products @ 70% LTV. I have about 5 weeks before my terms are up with my current lender, so I'm still shopping around. If I hear anything or when I make a decision I'll update the post.
Investor · Beaufort, SC · Member since 2019 · 11 posts · 5 votes
6y
Just got a quote on a loan for a refinance on my rental property. I went through Quicken Loans which sent me to Rocket Mortgage. Like Eric, I'm going to have to do a quit-claim out of my LLC into my name to close. 30 year fixed rate mortgage just over 4%. They're saying I cannot flip it back into my LLC after closing, though. What's the story with this? I'm being told it's due to Federal lending regulations?
Rental Property Investor · Beaufort, SC · Member since 2016 · 30 posts · 12 votes
6y
@Greg Lees. They're probably referring to the Due on Sale/Transfer clause that's found in most mortgages. This is a Fannie Mae/Freddie Mac requirement, not necessarily a bank requirement. However, if your lender plans on selling your note on the secondary market to Fannie Mae/Freddie Mac or to another bank that plans to do the same, this language is generally included in the mortgage paperwork. Essentially, this says that if you transfer or sell the Title to your property, the mortgagee (lender) as the right to call the entire principal balance due immediately. Just because they have the right to do this doesn't mean that they will exercise that right. In fact, I've personally never heard of a bank doing that so long as the mortgagor (the borrower) continues to pay their monthly payments. Transferring the title from your personal name back into an LLC after closing is something I'd probably not mention to the originator, as they're required to tell you that you ought not to. There's plenty on this specific topic floating around the forums.
Bottom line: If you're paying your monthly payments, banks generally don't enforce this clause. Why? because as long as you continue to make payments, they're making money, and so are the GSEs etc. They don't want to risk spending tons of money going through foreclosure on a performing note just because of a transfer/due on sale clause.
I've personally done this multiple times without any issue. Plus, in most cases EVEN IF THEY DO decide to enforce the clause, they have to give you notice of 30+ days to remedy. Worst case, transfer title back into your personal name, or refinance again... But incredibly unlikely.
Investor · Beaufort, SC · Member since 2019 · 11 posts · 5 votes
6y
Thanks,@Eric Berman ! I appreciate it! I did manage to refinance through Midland Mortgage Corporation out of Coulmbia, SC. I got a 3.5% interest rate on my refinance. I just put my second rental property under contract. This one is in Beaufort, over by the Naval Hospital, and I was approved for the financing again by Midland Mortgage. That should be 3.5% as well.