Is 4.44% a good Cash-out refinance rate?

Question

My local bank offered the following refi deal on my first couple of properties. I would like the opinion of others who have refinanced recently on the rates:

Properties: 2 properties held in an LLC, no current loans, currently rented

Rate: 4.44%

LTV: 75%

Term: 5 years, they are willing to do another loan at the end of the term. I would have liked a longer term given that I intend to hold these properties longer than 5 years.

Amortization: 25 years

Collateral: These 2 properties plus personal guarantee

Fees: $500 per loan

I haven't refinanced before, so I can't tell if this rate is reasonable. Any insight from fellow investors would be greatly appreciated. Thank you.

Hamid Sedaghat · Answer

Rates and amortization look good. Do they charge upon renewing the loan after 5 years as you'd want to include that in your calculations if so.

Kerry Baird · Answer

I also think the rate looks good, given that the properties are held in an LLC.

Will Fraser · Answer

Hi @Gopi Mandela!  These look like stellar rates and terms to me.  I'm pretty sure there will be more fees than what they've indicated so far IF there is title work that will be required on the refinances.

Otherwise, perhaps you could see if they would extend the term to 10, instead of 5 with an extension after 5.

Even at the current offering I'd be satisfied with it.