Sell investment property after cash out refinance

Buying & Selling Real Estate
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Sell investment property after cash out refinance

William C.
Plano, TX · Member since 2013 · 40 posts · 0 votes

I did a cash out refinance on my investment property 8 months ago.  Now I am in the process of selling it, and my loan broker told me I have to wait one year after the refinance to sell the house.  I'd like to hear from other investors after this restriction.  Have you met this problem before?  Is there any way to work around it?

Thanks so much for any comments!

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Ryan Johnston
Lender · Charlotte, NC · Member since 2019 · 67 posts · 72 votes
4y

Hey guys.  Mortgage Lender here.  Sounds like the broker(s) may be trying to protect his commission on the deal, if he is the person that closed the refinance.  Depending on their company policy, the broker/lender may have to repay his commission if loan is paid off within 6-12 months.  

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  • Pedro Yang
    Los Angeles, CA · Member since 2013 · 7 posts · 2 votes
    4y

    I'm in the same situation. I'll be grateful for some advise

    0Reply
  • Ryan Johnston
    Lender · Charlotte, NC · Member since 2019 · 67 posts · 72 votes
    4y

    Hey guys.  Mortgage Lender here.  Sounds like the broker(s) may be trying to protect his commission on the deal, if he is the person that closed the refinance.  Depending on their company policy, the broker/lender may have to repay his commission if loan is paid off within 6-12 months.  

    1Reply
  • Carini Rochester
    Investor · Rochester, NY · Member since 2016 · 576 posts · 358 votes
    4y

    Ask if you can pay off the loan and pay a pre-payment penalty. Based on the penalty, you would have to decide if its worth it.

    1Reply
  • Reid Chauvin
    Lender · Nashville TN - Licensed in AL AR DC FL GA LA MD TN, TX and VA · Member since 2021 · 583 posts · 338 votes
    4y

    I echo what @Ryan Johnston said. Might be worthwhile just to check if you have a pre-payment penalty in your loan agreement.

    1Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    4y

    @William C.

    Was this the plan? You’re paying closing costs twice within a year.

    0Reply
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