the bank offers me a "commercial" loan (because it's an investment property with
5.1 interest rate, very little fees.
i know it's high but it 's the best i can find in 2 months.
Is it crazy to accept or should i keep looking?
what interest rates are others paying for a cash out refi?
Commercial is always higher. I personally do not think its crazy if its the best you could find. Maybe you should present this to a couple local mortgage brokers, they will have a larger contact list then you and they will only have to run your credit once vs going to each individual bank. What is the property? I just did a cash out refi on a 3 fam for 4.75%
1 - 3.625%, amort 15 years, no fees, no seasoning
2 - 4.5%, amort 30 years, no fees, 6 month season
3 - 4.5%, amort 15 years, no fees, 6 month season
4 - 3.625%, amort 15 years, 2800 fees rolled in, 6 month season
Are you out of conventional options? And is the property titled in your name or an entity (LLC)?
If not then I'd look at conventional options. I'm in the middle of one now 4.25% no points $2400 closing costs.
the property is a sfh--i cannot get a conventional loan.
Joe-- where did you get those quotes from,?
5.1% is not high in my area. i recently got 4.5% but that's because i have good credit and a good relationship with the banker. I think of anything below 5% is free money if you handle it properly
5.1% seems a little high right now, but not crazy high. Our SFR refinances have been between 5 and 5.5% right now and we just got a quote on a multifamily at 4.75%. I don't think it's crazy to go with if you can't find anything better.
Actually it's 5.5, not 5.1.....I have great credit but low income, as i am self employed.
guess I'll go with it if i cant find better.
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