Investor · Westbrook, CT · Member since 2016 · 79 posts · 27 votes
I am getting ready to cash out refinance a property I bought all cash back in June 2018 in Springfield, Massachusetts.
I got couple of quotes. I cant find any quote lower than 4.25% with 750 loan processing fee and no points. It is a portfolio loan not Fannie/Freddie backed.
The property is not owner occupied.
Obviously other costs apply: attorney, title insurance, prepaids etc.
I have perfect credit and the property cash flows with debt.
Does anyone know any lender who can do better than 4.25%?
I was hoping for low threes in a zero FED rate environment
I am getting ready to cash out refinance a property I bought all cash back in June 2018 in Springfield, Massachusetts.
I got couple of quotes. I cant find any quote lower than 4.25% with 750 loan processing fee and no points. It is a portfolio loan not Fannie/Freddie backed.
The property is not owner occupied.
Obviously other costs apply: attorney, title insurance, prepaids etc.
I have perfect credit and the property cash flows with debt.
Does anyone know any lender who can do better than 4.25%?
I was hoping for low threes in a zero FED rate environment
Your hope for low 3's for a non owner occupied, cash out refinance is unrealistic. Take the 4.25 if it's still there and run.
I am getting ready to cash out refinance a property I bought all cash back in June 2018 in Springfield, Massachusetts.
I got couple of quotes. I cant find any quote lower than 4.25% with 750 loan processing fee and no points. It is a portfolio loan not Fannie/Freddie backed.
The property is not owner occupied.
Obviously other costs apply: attorney, title insurance, prepaids etc.
I have perfect credit and the property cash flows with debt.
Does anyone know any lender who can do better than 4.25%?
I was hoping for low threes in a zero FED rate environment
The Fed announced an emergency rate cut, mortgage rate could be lower, right?
WRONG! THE FED DOESN'T SET MORTGAGE RATES.
None owner-occupied investment properties are priced based on Fico, risks, location and loan amount.Lenders are overwhelmed with the volume and they don't have the capacity to work on the number of loan requests. Its about supply and demand and the lending world is being tested. Don't expect Investment loans to be on the low end of mortgage prices even if its a portfolio funded loan, the risk is different than an FHA/VA/USDA/CONVENTIONAL LOANS.
With U.S. interest rates at historic lows (FHA/VA/USDA/CONVENTIONAL LOANS), unprecedented Government stimulus, and the re-entry of the Fed into the agency and Government lending markets, there is now not enough capacity in the agency markets to serve a hurting America.
I am getting ready to cash out refinance a property I bought all cash back in June 2018 in Springfield, Massachusetts.
I got couple of quotes. I cant find any quote lower than 4.25% with 750 loan processing fee and no points. It is a portfolio loan not Fannie/Freddie backed.
The property is not owner occupied.
Obviously other costs apply: attorney, title insurance, prepaids etc.
I have perfect credit and the property cash flows with debt.
Does anyone know any lender who can do better than 4.25%?
I was hoping for low threes in a zero FED rate environment
Your hope for low 3's for a non owner occupied, cash out refinance is unrealistic. Take the 4.25 if it's still there and run.
Investor · Westbrook, CT · Member since 2016 · 79 posts · 27 votes
6y
@Ned J. The rate is decent but the cost is pretty high.. Seems like they are charging points. I wouldnt want 20yr term anyway. It would kill the cash flow.
I just got quoted by WF for a 20 year fixed 3.875% but the loan cost is $7500...... so I passed....
Ned,
This is a perfect example of what I've been preaching for years. It's not all about rate. It's about the deal. If the math works for you, do it. If the math doesn't work, you pass and then on to the next deal. Well done.