Lenders offering credits/negative points on investments?

Question

Hey guys, I am having trouble finding a lender that will refinance my 4plex from a 30 year to a 15 year with no closing costs. I realize that the rates on multiplex investments are higher anyways ...I am refinancing one right now (with closing costs) for 4.25 but they wouldn't raise the rate to cover closing with this particular lender. So for my other property, I've called a couple of other places and either no luck or their rates are much higher, like 5.5%. Anybody can recommend a lender at about 4.65 or 4.75 on a 15 year and cover closing costs?

Russell Brazil · Answer

Try reaching out to @Upen Patel

Chris Mason · Answer

I thought I'd have an easy answer for you, but ya searching for 4.75% it looks like a lot of lenders REALLY don't want to go above 4.25% or 4.375% for your scenario (I had to make up a bunch of assumptions of course). First diminishing returns hits, then the lender credits for the higher rate start to get smaller (eg, 4.625% would cover MORE of your closing costs than 4.75%, not less). I only spot checked with a couple since this isn't "my" deal, maybe someone digging a little deeper would find something that works.

I don't do a huge amount of 15YF (bay area mortgage amounts, good luck qualifying :P ). There must be some "big data" out there saying that statistically you are too likely to refinance in <3 years with a rate that high on a 15YF n/o/o investment. We see that sometimes with FHA, nice round interest rates (3.5% or 3.75% or 4%) are often more favorable than f. ex. 3.625% or 3.875% or 4.125%.