Refinance rates and fees

5 Replies

I recently got a quote for a rental home refinance that I own free and clear. It brings in $1350 a month appraisal at 155k to 165k. The 2 rate options were 6.9% plus $5,470 in fees 30 day close 75% appraised value and the other was 8% interest,  $5,400 fees, 60% Appraisal, 2 week close plus some additional income verification. I have an 800+ credit score NO debt at all and over $100k in the bank. I thought these fees were high but some investors have said its  not bad.

@Colbi Ight

When you say fees are we just talking about what they are charging to originate the loan? How long have you owned this property?

By the way, those rates are extremely high.

Those are the total costs/fees that i will be charged for the loan. Appraisal, loan origination fee of $2500, escrow fee,title insurance,and other small fees.   I have owned the properties for over a year and a half. They have both been rentedto new tenants for over 3 months each with great tenants.  price points are $155K and $125k. Conventional 30 year fixed rate loans.

@Colbi Ight Depending on the property's NOI you can definitely do better than 6.9% based on that FICO.

There are asset-based products out there designed for investors with high DTI, the desire to vest in a LLC, 10 + mortgages, unique scenarios, etc etc. Obviously, the risk profile from the lender's standpoint is different and rates are higher. However, you can still find 30 year fixed terms in the 5% and 6% range that are based mainly on FICO and the subject property's cash flow (DSCR). If your property will cash flow at 1.15 or above you should be able to cash out refi as high as 75% LTV (based on new appraised value). No tax returns or personal income verification required of any kind.

@Colbi Ight those do sound like "portfolio" types of loans to me but as has been suggested above I think you could certainly do better.  If your properties are here locally there are other options that you will have at your disposal.  Please continue to shop and maybe lean on the Texas forum here to see whom some other Texans have used.  Good luck!