Rental Property Investor · Fayetteville, NC · Member since 2014 · 884 posts · 670 votes
Hello BP,
I'm in the process of completing my first cash out refinance and I wanted to get your take on the terms that i'm being offered. This is a tenant occupied SFR that doesn't have an existing mortgage.
Investor · Little Rock, IA · Member since 2015 · 136 posts · 72 votes
9y
@Justin Tahilramani -- I am also refinancing an investment property this month for cash out to buy more property. I also worked as a loan officer for several years. Based on what I was offered the rate is decent. I am currently being offered 4.75% for a multifamily 4 plex. So a SFR usually gets a slightly better rate. But I won't worry to much about 1/8 -- rates can fluctuate date to day. That rate is pretty close to best one out there is my guess.
Origination -- I usually ask my lender to start with a $0 origination fee. On a cash out deal you are trying to maximize cachet, so origination takes away from that. As a starting place in negotiation I would ask for a 0 Origination offer.
Processing Fee - It pretty standard for them to charge $1000 about as a loan Processing, anything less is a good deal in my mind. I was always forced to charge more for processing when I worked as a loan officer. But I would not want to pay a processing fee AND an origination fee. See if he has no processing fee and is charging origination instead. If is charging processing, ask him what his offer would be without the origination fee. -- Thats my 2 cents. Also, I have found Zillow Mortgage to be the best place to find no nonsense cheap lenders. They advertise rates an fees right in search engine and you can get a quote call that company and get very close to what they quoted in my experience. I have used it multiple times to get a mortgage. This was always cheaper than my local bank or a referral from a realtor. -- Chris