Should I refinance out of a hard money loan with the same lender?

4 Replies

The general thought is that you should always refinance out of a hard money loan into a better loan if you are going to keep the property versus selling it? If you want cash out and you plan to get the best rates and terms (Fannie Mae / Freddie Mac) you must have been on title for 6 months or more. You can also do a portfolio loan as well for higher LTV's but also at slightly higher rates.

Even though its the same lender, what is the loan type that they are offering on the refinance? If its good terms, then take the deal. If you not sure, you can shop around to see what other terms are available. Don't let them pull your credit report, just give them an idea of your credit score and details about the refinance, anticipated appraised value, if you want cash or not, anticipated loan amount. The lenders should be able to give you a rough quote on the rates and closing costs, then pick your lender and go forward?

I hope this helps?

If you're really asking if there's anything inherently wrong with it, the answer is no IMO (as long as they don't have a bad rep & have the best deal). 

Do your due diligence just as you would with any other lender. 

I've worked for a lender that offered both. If the terms make sense sure. You might even be able to save some costs such as closing costs so be sure to account for that too. But in many cases, if you're bankable you may be able to get better terms conventional if you're going from an HML to a conventional lender so it's very situational