Cash-Out Refi Lender with No/Low Closing Costs?

Question

Looking for a lender that can do a no/low-cost cash-out refi on a rental. Throwing this out to the BP Community. Curious if anyone has found an ideal/competitive option for this? Thank you!

I'm in Utah, PS!

Skyler Smith · Answer

@Lincoln Selk Yeah I'd talk with Altabank. They have been awesome to work with, many of my clients have loans from them and they do my multifamily stuff as well.

Lincoln Selk · Answer

Thanks, @Skyler Smith. Pulling equity from a long-term hold rental and keeping it on a 30-year note, so may not make sense on this particular project, but I'd be curious if you have anyone you like for a commercial loan.

Thank you!

Chris Clasby · Answer

The key is to look at the merits of getting the costs down with raising the rate vs. paying them. What's the ROI on the higher payment with closing costs covered, and do you plan to be in the property that long?

Lincoln Selk · Answer

Amazing. Thanks, @Skyler Smith.

Lincoln Selk · Answer

Thanks, @Jenning Yu and @Chris Clasby. Yes, I would run the numbers for the project I'm working on to see the cost of any rate/closing cost trade-off. I'll see how Lane over at First Colony compares to the other traditional lenders I've received quotes from.

My question was more along the lines of any lender particularly competitive on closing costs for the refi without taking a huge hit on the interest rate.

I appreciate the help!

Skyler Smith · Answer

Are you looking for something that is fixed for 15-30 years? You could also consider a commercial line.

Jenning Y. · Answer

Chris is right,  no cost means higher rate.  I  worked with "Lane Aldrich" of "First Colony Mortgage" in Utah , they have no cost option.

Chris Mason · Answer

You can swap out rate to have the lender cover all closing costs...

Anthony Dooley · Answer

I have found that banks all follow the FNMA guidelines for lending. They are all going to require the same things for underwriting. Costs will include an appraisal, origination fee, title work, filing fee, etc. Banks are the cheapest money available.

Cash-Out Refi Lender with No/Low Closing Costs?

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