Upper Marlboro, MD · Member since 2016 · 46 posts · 10 votes
Hello BP,
Can you advise me is this considered a good deal to refinance my rental property? I'm currently on a 12 month Hardmoney rehab loan looking to refinance out of the high interest rate. I was offered below:
Around 5% with a 20 or 25 year amortization, a 5 year term and a 1 point fee
Investor · Mississauga, Ontario · Member since 2017 · 2 posts · 0 votes
9y
5 years term is for the interest rate locking period after which you can re negotiate the interest rate based on then current market rate. Its likely that your interest rate wont change for 5 years irrespective of market trend should you finish the term. 1 point fee is normally admin/processing fee amongst B / hard money lenders.
Rental Property Investor · Reedsburg, WI · Member since 2011 · 1k+ posts · 857 votes
9y
@Account Closed that rate does sound pretty standard.
We were able to find a better deal, but it took a LOT of searching and they only loan regionally here in my state.
We were able to get 5.25% on a 25 year amortization, a 10 year lock on that rate and a max of 1% per year increase after that with a maximum of 11.25% if I remember right. No points but a application/processing fee of about $800 or so on 375K of loans.