Where should I be looking to get the best deals on Cash Out Refi?

13 Replies

I purchased a 4 plex property using a hard money loan 3-4 months ago. I was planning on waiting the 6 months and get it refinanced however Im not sure why I did not think of this earlier. I can cash out refi on my owner occ. ( fully paid for ) which the price is equivalent to the HML then use that cash to pay off the HML or just balance transfer the amount.

Total value of owner occ home is 160k. I heard this may be an issue because its under 200k many lenders do not like.

So BP community any tips or suggestion on where to find the best rates and terms. Looking for a 10yr and above. Closing cost I am open to suggestions. if under 1,500 I will just pay it out of pocket. If more I would be willing to pay a little higher interest rate as long as it comes out close to what I would of originally paid for closing.

Which would you recommend a Cash Out Refi or HEL and why?

@Anthony Contento Not sure if I fully understand your question.

1. You currently have a HML that you used to buy a property?

2. You have a property (Primary residence) that has enough equity in it to refi and pay off the HML?

3. You would like to know if this is a viable option?

Yes, yes and Im almost positive its a viable option. 

My question is where is the best place to get a HEL or Cash Out Refi. and which one would be better for me.

@Anthony Contento Now were getting somewhere. So I know many lenders have caps on the max amount of a HELOC. In my area 50K is the max. TD Bank and and Capital One do 90% LTV (not to exceed 50 in loan proceeds). Cash out Refi is a different ball of wax as many lenders will do up to 85% LTV and will give a loan as long as the equity is there. Both options will be soft money so my suggestion would be.

1. If the HML is 50K or less, go second mortgage and if it is above, go C/O refi. The HELOC many times is first 10 years interest only whereas the C/O Refi will be a new 30 yr Amortized P/I loan(if it's a conventional lender) Rates are still low so you have good options. Hope this helps.

You could have avoided the hml by using a Heloc from your primary residence to invest in your 4 plex . You only have to wait 2 more months to do a cash out refi at 75% value as long as the equity and you have the supporting rental income  This is your best option as of now 

HML is 130k. I know rates are low which is why i am looking for best terms i can find, or our BP community can recommend. I do not want a HELOC because interest rates will vary which Is why I have chosen to go with a HEL or a Cash out Refi.

@Anthony Contento sounds like you have your mind made up, go cash out refi! I believe in your original post you mentioned that the value of your primary is 160K.  With that said, if you don't have a note on it, a lender will loan up to 120K which will leave you 10K short of your payoff.  You can always do a Heloc for the 10K balance as you can loan an additional 24K above the the lein holder in 1st position.

Originally posted by @Steven Picker :

You could have avoided the hml by using a Heloc from your primary residence to invest in your 4 plex . You only have to wait 2 more months to do a cash out refi at 75% value as long as the equity and you have the supporting rental income  This is your best option as of now 

 I had to act quick and didnt have enough time to wait for heloc to process. That is true, I only need to wait 2 more months but why wait? And why pay for 4 house appraisals when I only can do 1. What are the benefits of waiting?

Only 1 appraisal is needed for the 4 plex unless you purchased 4 separate properties,you only have to do 1 cash out refi on the 4 plex  in 2 months  

These a 4 individual units one 1 property. I will need to pay triple what an appraisal will be for 1 single family home.

My questions is to what are the best companies currently offering the best rates on a cash out refi with low closing cost.

Maybe I should re post the question without my situation why. I thought the header title was clear

@Chris Mason is a very aggressive California lender who can give you the best solution. A 4 plex is usually considered a single property not 4 individual ones, that was the reason for my misunderstanding  

 

We are currently working on a cash out refinance for a rental vacation home in Big Bear Lake, and can go up to 65%-70% LTV, at ~7.5% interest on 3 year terms. As long as the property income will cover the debt service, the loan can be done.

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