Cash out Refi - are these numbers acceptable?

6 Replies

Hi, I am applying for a cash out refi so I can take some equity out of a rental property I own outright in Florida.

Are these numbers a good deal?

Property: Condo - owned outright - current value $300k

Loan amount: $240k - 30 year fixed

Interest rate: 4.375%

P&I payment of $1198/month

Origination charges:

fees: $4250

underwriting: $1120

Lender credit to borrower $-5100.00

appraisal $435

credit report $12

closing/escrow fee $500

document fees: $100

notary fee: $150

Lenders title insurance: $450

recording charge: $120

Daily interest charges (24.8333 x15 days = $387.50)`

est closing costs: $2037.00

Is this a decent rate and charges?

Thanks!

You're assuming you're going to be able to pull out 80% of your equity which is very unlikely, especially with a condo. I imagine the bank is only going to offer you 65-70%.

These are the numbers from the GFE from the lender. You think they pull a bait and switch and offer less?

@Rainier Guiang I am currently in the middle of doing a cash out refi as well. I was only able to find offers with 75% LTV. Your other numbers look very much in line with what I was given as well if not just slightly better with your interest rate. Do you mind me asking which lender you are going through?

@Chris T.

Hi Chris, I'm using United Home Loans in Orange County, CA. Funny, I havent locked in the rate yet and it's already gone up to 4.5% from 4.375.

Rainier,

That's pretty solid. I'm a LO out here in CA, and I don't know how they are getting to 80 LTV, but if they are, then what you're getting is totally solid.

I only know of 75 LTV max for C/O refi on investment property.

Just my .02

Not sure where the lender is getting 80% LTV on a cash out because the only option for a Florida condo if you live in Tustin is either a 2nd home or a non owner occupied property both of which offer max cash out to 75% LTV if you have 1-4 financed properties min 700 fico and 6-12 months PITIA.

Pricing is great though if its a real. 

I have a blog article on what determines a mortgage rate  - "Whats Needed to Determine your Mortgage Rate."

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