Cash-out refinance interest rates too high!
I need some help.
I am getting ready to cash out refinance a property I bought all cash back in June 2017 in Springfield, Massachusetts.
I got couple of quotes. All of them are in the low 5 to mid 5's with couple of thousand closing costs @75% LTV which is pretty high in my book!
I have perfect credit and no debt.
I am surprised that non-owner occupant, 3 family is penalized so much over an owner occupant.
If anything, I am more capable of paying the mortgages better than an owner occupant because the property produces more than 3.5 times the mortgage payment. It is professionally managed.
Does anyone know credit unions or banks that are more investor friendly and who can make logical risk assessments? Preferably 80-85% LTV with low 4's interest.
I am kicking myself. Monson Savings Bank was willing to do 4.1% with 70%LTV back in July. I shoud have done that. Instead, I waited for the seasoning period to be over and to get a better %LTV with Fannie and Freddie type loans.
I know it sounds stingy to sweat over 1% interest rate but that makes ~$100 monthly difference in cash flow. For a managed property, you are working with thin margins. So, $100 makes a difference in long term cash flow.