Investor · Highland Park, IL · Member since 2015 · 68 posts · 18 votes
Just today got quoted %5.55 for a %70 LVT for a cash out refinance on a 2 unit investment property in CA. Seems high being I just bought a duplex at %4.35. Thoughts?
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
6y
Why does everyone fret about a percent or so when money is dirt cheap historically. Someday you will be telling your children "you know i used to be able to get money at 5.5% and I thought that was too high!"
Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
6y
@Michael Bettencourt
You can get any percentage rate that you want really, just have to buy points if the numbers make sense. Not sure how much you cashed out but typically you get a higher rate for anything less than 100k.
I have properties at 5.5% that the numbers work well in the end and I have some at 3.5% that numbers work out to the same COC return
Investor · Little Rock, IA · Member since 2015 · 136 posts · 72 votes
6y
@Michael Bettencourt
I used to work as a loan officer. A cash out refi always has a higher rate than straight purchase or refinance with no cash out. That rare actually looks good to me. I paid 5.375% for a purchase.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
6y
It all depends on your own net worth, income, credit, and other variables like the property location & strength. It sounds slightly high, but not extremely. You can’t compare rates across different states and borrowers.
Now you can find commercial debt for multis around 3.85-4.25 for well qualified sponsors in primary and secondary markets.
Also for the people that are saying “how much lower do you want?”, well as low as possible lol.
I’m doing a refi right now from 5% to 4-4.25 on a cash our refi. Why wouldn’t I save the .75%-1% for doing nothing?
I did my refi 2 months ago, no cash out though, drop from 4.99% to 3.99%. I don't know if it's different for cash out or not. I live down South CA. Good Luck.
Lender · Newport Beach, CA · Member since 2015 · 15 posts · 4 votes
6y
@Shaun Weekes
I am a wholesale account executive and I noticed your response to a borrower asking about Non-Qm. I work with Excelerate Capital and would like to partner with you to offer the Non QM products we have. Let me know if it's ok to send you material including broker package.
Lender · Newport Beach, CA · Member since 2015 · 15 posts · 4 votes
6y
@Brian Salazar
I am a wholesale account executive and I noticed your response to a borrower asking about Non-Qm. I work with Excelerate Capital and would like to partner with you to offer the Non QM products we have. Let me know if it's ok to send you material including broker package.
Rental Property Investor · Olympia, WA · Member since 2017 · 13 posts · 5 votes
6y
@Michael Bettencourt
I just closed a 70% LTV cash out refi on a duplex last week at a 4.75%. The property is in Washington but the loan servicing company was located in Florida.
Woodstock, MD · Member since 2013 · 1 post · 1 vote
6y
Mike. I was very happy with a refinance on a SFR I own that just closed in MD in the last 30 days with Aimloan.com. I paid 0.851 points to get a 4.0% rate, which significantly lowered my monthly payments from the 5.25% rate I received on this investment property as a cash put refi about 14 months ago. The LTV was 75%. My sister also is using Aimloan.com and for a cash out refi on SFR BRRR property in upstate NY purchased and rehabbed with cash. She closes the loan this week with a mobile notary like I did. She got the same 4.0% loan at 75% LTV. We are both very happy with the online process and communications with the loan officer and processer. Neither of us is affiliated in any way with this lender. They just provided a better deal than we could get locally. I also thought the other closing costs were lower than I had experienced in 9 other mortgage transactions. You can see the available rates for primary residences and investment properties at their website, which change slightly every day and sometimes during the day.
Paducah, KY · Member since 2016 · 75 posts · 45 votes
6y
@Michael Bettencourt I believe you are missing out on the bigger picture here. Some say the rate is high, some say shop, I say the answer lies within the relationship you have with your bank. I have learned in my time that while some banks can beat rates, the overall relationship can be extremely important. I left a lower rate bank with high red tape to go to a local bank that while their rate was higher (4.5-5.9 depending on the loan) they have gone above and beyond for us. They structured a loan for us that is extremely flexible- because we had a relationship. Think about what your future holds and the type of deals you will be doing- will your relationship with your banker help you? The lowest rate isn’t always the best.
Investor · Prescott/Tempe, AZ · Member since 2013 · 73 posts · 57 votes
6y
The last refi I did in August was 4.375. This was before the last rate cut. I don’t know a lot about your area, but my gut says that’s hi. Shop around.
Rental Property Investor · Pasadena · Member since 2019 · 46 posts · 15 votes
6y
@Michael Bettencourt
I am trying to get cash out too I have gotten as cheep as 3.59% 30 year amarerization and after 5 years it goes to 250 points plus api which is about 1.6% I think . So then it would be over 4% after 5 years And I got a few as high as 5.5 too
Investor · Highland Park, IL · Member since 2015 · 68 posts · 18 votes
6y
I guess some more valuable info is the property will definitely NOT cash flow after the cash out refinance. I’m pulling $ out to improve properties that are cash flowing in the mid west.