Currently have: 2.999% interest rate on 170K loan of 300K property, 30 yrs fixed (non owner occupied fourplex, purchased 2 years ago)
Thinking about this quote: 4.375% with 1% origination fee or 4.875%, 30 yrs fixed, cash out refinance, attempting to pull about 150-200K equity (estimating property value is now 425-450K) out to purchase newer SFH home or duplex to house hack.
The rents from fourplex total about $3100/mo.
My goal: To purchase a duplex to househack or SFH property to live in for a year with cash from cash out refi.
What are your thoughts on this? Do you think my situation could benefit from a cash out refinance? Does this quote seem to be in the good end for these types of loans?
Those are the about the Fannie Mae rates right now.
Whether to do it or not is really a math question. Can you make the cash out pay for itself and if the answer is a comfortable yes at those interest rates, then do it. In Newport News, check out Towne Bank and see what they're doing. You may be pleasantly surprised. I'd also look into a HELOC.
That seems high, especially with the 1% origination fee. I would shop around.
Those are the about the Fannie Mae rates right now.
Whether to do it or not is really a math question. Can you make the cash out pay for itself and if the answer is a comfortable yes at those interest rates, then do it. In Newport News, check out Towne Bank and see what they're doing. You may be pleasantly surprised. I'd also look into a HELOC.
See link: https://www.housingwire.com/ar...
Most lenders, clearly including the one referenced by OP, were running at 10% or 14%. Far above the new 7% cap. So they have jacked up their rates/fees for rental properties taper down to 7%. If I own a Burger King franchise, and corporate tells me to sell less Whoppers (let's say they cap my burger sales at 7% Whoppers, or they fine me), I'm going to do 2 things: 1) Put less signs up about Whoppers, more signs about other burgers. 2) Jack up my Whopper prices. That's what most lenders are being forced to do right now WRT rental property mortgages.
You need to find someone that can quickly and efficiently identify lenders that aren't tapering down, ones that weren't running at 10% or 14%, but were previously running at 4% or 6%, ergo no need to jack up rates/fees to taper down that type of business. But, concurrent to that, the lender that hasn't always been 10% to 14% rental loans, it needs to not be due to incompetence at that particular loan type.
Find a mortgage broker dot com is a 3rd party directory of local mortgage brokers. Note that there is a difference between mortgage bankers and mortgage brokers.
See link: https://www.housingwire.com/ar...
Most lenders, clearly including the one referenced by OP, were running at 10% or 14%. Far above the new 7% cap. So they have jacked up their rates/fees for rental properties taper down to 7%. If I own a Burger King franchise, and corporate tells me to sell less Whoppers (let's say they cap my burger sales at 7% Whoppers, or they fine me), I'm going to do 2 things: 1) Put less signs up about Whoppers, more signs about other burgers. 2) Jack up my Whopper prices. That's what most lenders are being forced to do right now WRT rental property mortgages.
You need to find someone that can quickly and efficiently identify lenders that aren't tapering down, ones that weren't running at 10% or 14%, but were previously running at 4% or 6%, ergo no need to jack up rates/fees to taper down that type of business. But, concurrent to that, the lender that hasn't always been 10% to 14% rental loans, it needs to not be due to incompetence at that particular loan type.
Find a mortgage broker dot com is a 3rd party directory of local mortgage brokers. Note that there is a difference between mortgage bankers and mortgage brokers.
Agreed. Find a mortgage broker. I have plenty of lenders that would love that loan. I am not licensed in your state so I am not your guy, but there are plenty that will help.
Those are the about the Fannie Mae rates right now.
Whether to do it or not is really a math question. Can you make the cash out pay for itself and if the answer is a comfortable yes at those interest rates, then do it. In Newport News, check out Towne Bank and see what they're doing. You may be pleasantly surprised. I'd also look into a HELOC.
Investment property 4 unit with 70% LTV cash out and 740+ credit can get you a convention loan for 3.375% at ZERO points APR 3.483%. So take that point away and drop the rate 1%. So no that's not what "Fannie Mae rates" are right now. For some lenders yes they are that bad with pricing but that's pretty much the top of the range, which means the least competitive. If you can't find something better than 4.375% for a point then maybe you have 680 credit? I re-ran my search with 680 and it would be 4.375% with no points, APR 4.412.
This is not an advertisement, just quoting rates from my pricing engine to help ya'll out.
See link: https://www.housingwire.com/ar...
Most lenders, clearly including the one referenced by OP, were running at 10% or 14%. Far above the new 7% cap. So they have jacked up their rates/fees for rental properties taper down to 7%. If I own a Burger King franchise, and corporate tells me to sell less Whoppers (let's say they cap my burger sales at 7% Whoppers, or they fine me), I'm going to do 2 things: 1) Put less signs up about Whoppers, more signs about other burgers. 2) Jack up my Whopper prices. That's what most lenders are being forced to do right now WRT rental property mortgages.
You need to find someone that can quickly and efficiently identify lenders that aren't tapering down, ones that weren't running at 10% or 14%, but were previously running at 4% or 6%, ergo no need to jack up rates/fees to taper down that type of business. But, concurrent to that, the lender that hasn't always been 10% to 14% rental loans, it needs to not be due to incompetence at that particular loan type.
Find a mortgage broker dot com is a 3rd party directory of local mortgage brokers. Note that there is a difference between mortgage bankers and mortgage brokers.
FINDAMORTGAGEBROKER.COM is definitely NOT a 3rd party directory! Come on man! You took the blue pill obviously...
I'm pretty sure you know that's a directory from UWM, United Wholesale Mortgage and you'll only find brokers who work with UWM on that directory. Furthermore, UWM's pricing sucks lately. When the CEO flat out says he doesn't want to be the best priced then guess what you're not getting...
Those are the about the Fannie Mae rates right now.
Whether to do it or not is really a math question. Can you make the cash out pay for itself and if the answer is a comfortable yes at those interest rates, then do it. In Newport News, check out Towne Bank and see what they're doing. You may be pleasantly surprised. I'd also look into a HELOC.
Investment property 4 unit with 70% LTV cash out and 740+ credit can get you a convention loan for 3.375% at ZERO points APR 3.483%. So take that point away and drop the rate 1%. So no that's not what "Fannie Mae rates" are right now. For some lenders yes they are that bad with pricing but that's pretty much the top of the range, which means the least competitive. If you can't find something better than 4.375% for a point then maybe you have 680 credit? I re-ran my search with 680 and it would be 4.375% with no points, APR 4.412.
This is not an advertisement, just quoting rates from my pricing engine to help ya'll out.
Those rates you're quoting are super low.
Congratulations. Not at all what I'm seeing.
Best of luck
Those are the about the Fannie Mae rates right now.
Whether to do it or not is really a math question. Can you make the cash out pay for itself and if the answer is a comfortable yes at those interest rates, then do it. In Newport News, check out Towne Bank and see what they're doing. You may be pleasantly surprised. I'd also look into a HELOC.
Investment property 4 unit with 70% LTV cash out and 740+ credit can get you a convention loan for 3.375% at ZERO points APR 3.483%. So take that point away and drop the rate 1%. So no that's not what "Fannie Mae rates" are right now. For some lenders yes they are that bad with pricing but that's pretty much the top of the range, which means the least competitive. If you can't find something better than 4.375% for a point then maybe you have 680 credit? I re-ran my search with 680 and it would be 4.375% with no points, APR 4.412.
This is not an advertisement, just quoting rates from my pricing engine to help ya'll out.
Those rates you're quoting are super low.
Congratulations. Not at all what I'm seeing.
Best of luck
That's just pulling pricing from Loan Sifter...But hearing that I've got awesome rates never gets old :)
See link: https://www.housingwire.com/ar...
Most lenders, clearly including the one referenced by OP, were running at 10% or 14%. Far above the new 7% cap. So they have jacked up their rates/fees for rental properties taper down to 7%. If I own a Burger King franchise, and corporate tells me to sell less Whoppers (let's say they cap my burger sales at 7% Whoppers, or they fine me), I'm going to do 2 things: 1) Put less signs up about Whoppers, more signs about other burgers. 2) Jack up my Whopper prices. That's what most lenders are being forced to do right now WRT rental property mortgages.
You need to find someone that can quickly and efficiently identify lenders that aren't tapering down, ones that weren't running at 10% or 14%, but were previously running at 4% or 6%, ergo no need to jack up rates/fees to taper down that type of business. But, concurrent to that, the lender that hasn't always been 10% to 14% rental loans, it needs to not be due to incompetence at that particular loan type.
Find a mortgage broker dot com is a 3rd party directory of local mortgage brokers. Note that there is a difference between mortgage bankers and mortgage brokers.
FINDAMORTGAGEBROKER.COM is definitely NOT a 3rd party directory! Come on man! You took the blue pill obviously...
I'm pretty sure you know that's a directory from UWM, United Wholesale Mortgage and you'll only find brokers who work with UWM on that directory. Furthermore, UWM's pricing sucks lately. When the CEO flat out says he doesn't want to be the best priced then guess what you're not getting...
"3rd party" means "not a party to the conversation." IE, I do not work for that website, the company that owns that website, etc. I know some folks who have never sent a deal to UWM that are listed there, so that "only" isn't accurate. I don't know where they source their data from, but it's certainly not just folks that send them business. Yelp and Google would also be 3rd party websites (since I also do not work for Yelp or Google) but they don't know broker from banker, so not necessarily super useful in this context. Similarly, you can find businesses on Yelp and Google that don't give (advertising) business to Yelp and Google.
But if we want to balance out the force, sure, here's Darth Vader's mortgage broker directory (which also lists folks who do not send business to the parent-lender that sponsors the particular directory in question):
https://www.rocketmortgage.com...
If you know of something like that, that knows broker from banker (in California and some other states, that's concurrently also the difference between a fiduciary and a salesperson), that isn't run/maintained/etc by a major national wholesale lender, I'll happily plug that instead when this comes up in the future.
Hi. I'm also currently looking for cash out refinances on 3 rental properties. 760+ credit. Income and DTI's are good.
2 Single Family rentals, 1 Duplex.
I was just told by a lender that the rate for multifamily is a bit higher and that top LTV is 70% which is acceptable.
Here were the quotes for 30 year financing as of yesterday.
290k property SFR 75% LTV cash out, conv loan, 3.125%, $1,499 points; OR 3.25%, $1098 points; OR 3.375%, $1001 lender credit.
$300k Duplex 70% LTV cash out, conv loan, 3.75%, $1,591 points; OR 4%, $675 lender credit.
From the lenders out here, does this seem about right, or could I do a bit better?
So Benjamin, based on what I was quoted, yours seems a bit high & you might do well to shop a little.
See link: https://www.housingwire.com/ar...
Most lenders, clearly including the one referenced by OP, were running at 10% or 14%. Far above the new 7% cap. So they have jacked up their rates/fees for rental properties taper down to 7%. If I own a Burger King franchise, and corporate tells me to sell less Whoppers (let's say they cap my burger sales at 7% Whoppers, or they fine me), I'm going to do 2 things: 1) Put less signs up about Whoppers, more signs about other burgers. 2) Jack up my Whopper prices. That's what most lenders are being forced to do right now WRT rental property mortgages.
You need to find someone that can quickly and efficiently identify lenders that aren't tapering down, ones that weren't running at 10% or 14%, but were previously running at 4% or 6%, ergo no need to jack up rates/fees to taper down that type of business. But, concurrent to that, the lender that hasn't always been 10% to 14% rental loans, it needs to not be due to incompetence at that particular loan type.
Find a mortgage broker dot com is a 3rd party directory of local mortgage brokers. Note that there is a difference between mortgage bankers and mortgage brokers.
FINDAMORTGAGEBROKER.COM is definitely NOT a 3rd party directory! Come on man! You took the blue pill obviously...
I'm pretty sure you know that's a directory from UWM, United Wholesale Mortgage and you'll only find brokers who work with UWM on that directory. Furthermore, UWM's pricing sucks lately. When the CEO flat out says he doesn't want to be the best priced then guess what you're not getting...
"3rd party" means "not a party to the conversation." IE, I do not work for that website, the company that owns that website, etc. I know some folks who have never sent a deal to UWM that are listed there, so that "only" isn't accurate. I don't know where they source their data from, but it's certainly not just folks that send them business. Yelp and Google would also be 3rd party websites (since I also do not work for Yelp or Google) but they don't know broker from banker, so not necessarily super useful in this context. Similarly, you can find businesses on Yelp and Google that don't give (advertising) business to Yelp and Google.
But if we want to balance out the force, sure, here's Darth Vader's mortgage broker directory (which also lists folks who do not send business to the parent-lender that sponsors the particular directory in question):
https://www.rocketmortgage.com...
If you know of something like that, that knows broker from banker (in California and some other states, that's concurrently also the difference between a fiduciary and a salesperson), that isn't run/maintained/etc by a major national wholesale lender, I'll happily plug that instead when this comes up in the future.
So it's semantics then... "3rd party" to most people I know means more generally "not one of the principals", or more specifically in this case that the website was run by someone who was "not one of the principals of a lender, any lender". The phrase 3rd party is attempting to denote a separation between the website and a lender is it not?
Don't mind me man! I'm just a 2 person operation and nobody else to give crap to!