Trussville, AL · Member since 2014 · 3 posts · 0 votes
Esteemed REI's,
I wanted to get some opinions on my current mortgage situation and see if there is an option that will possibly lower my interest rate and payment on 3 long term rentals I have. I hear a lot about portfolio lenders and wondered if it made sense to try and consolidate all 3 into one loan (assuming that's how the portfolio lenders work).
Mortgage 1, 30 yr conv, 6.75%, 2008, 55k orig bal, 46k remain, PITI $470/mo. Rented 95% since purchased. Bank of America.
Mortgage 2, 30 yr conv, 5.75%, 2009, 35k orig bal, 31k remain, PITI $376/mo. Rented 95% since purchased. Everhome
Mortgage 3, 30 yr conv, 5.625%, 2009, 55k orig bal, 49k remain, PITI $441/mo. Rented 90% since purchased. Everhome
Rental House #4, no mortgage (maybe use for collateral?)
I'm not in any bind whatsoever but was just thinking if I could effectively lower the payment by a few hundred every month, that wouldn't be a bad thing.
Real Estate Investor · WI · Member since 2013 · 125 posts · 33 votes
12y
Hi John, Welcome to BP!
Portfolio loan = In house loan = Bank uses it's own money.
You could probably get better rates, assuming good credit, appraisal supports price etc. Maybe even 3+% rates on 25am, but the rate locks will be 3 or 5 years before ARM.
So You lose the safety of 30 yr rate locks.
If the existing mortgages are Conventional, then I would immediately join a Credit Union and check refi options, especially on the 6.5% loan. Closing costs will hurt for investment property, but rates should be around 4.5% locked for 30yrs right now.