What are the best rates to refinance a 4-plex right now?

Question

No cash out necessary (just need enough to cover closing costs). I'm looking up rates on random websites like bankrate, and seeing Sage Mortgage have some pretty good rates. However, they show rates for SFRs mostly. What are the rates right now for conventional mortgages on investment property? I have 25% equity and need to refinance a 4-plex out of FHA so I can get another FHA.

Eliott Elias · Answer

I'd hold off on the refi unless you're pulling the cash out and need it. If it's just a refi i'm anticipating rates to go back down to historic lows at the end of the year

Trevor Alexander · Answer

Hi Ellie - just sent you a PM request.

Jay Hurst · Answer

Rates depend on a large number of issues including credit score, occupancy, loan to value just to name a few and what type of loan you can qualify for. If you can qualify for a conventional loan meaning you can qualify with a full doc loan documenting your income etc it will generally be lower then a debt service coverage ratio loan for example (where you just use the income from the property, not tax returns/pay stubs etc) . But, conventional loans do have what are called Loan level pricing adjustments (LLPA) that adjust the rate (mostly up) based on your exact loan attributes. For a non-owner occupied 4 unit at 75% loan to value there is a LLPA of 3.125%. That is NOT directly to the rate but does effect your end rate quite a bit pushing the rate a 1.5%~ then an single family owner occupied property. Here is the LLPA matrix directly from the source: Fannie Mae LLPA matrix

HOWEVER, we have products that are full documentation WITHOUT the LLPA adjustments. These are at least .750% LOWER then conventional right now for multifamily properties.

What are the best rates to refinance a 4-plex right now?

What are the best rates to refinance a 4-plex right now?

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