Type of loan to use for cash-out refinance (not Fannie/Freddie)
1 Reply
David Vitarelli
Property Manager from Cherry Hill, NJ
posted about 1 year ago
Hello Group. I am at a point where using conventional mortgages (Fannie and Freddie) is no longer an option. I have been exploring the use of a fixed 20 year commercial loan at 6.44% OR a 5 year LOC with a variable rate (WSJP + 2%). I wanted to know what types of loans others are using to pull cash out of their properties. Looking forward to hearing from you!
Jon Reed
Rental Property Investor from Springfield, MO
replied about 1 year ago
I use commercial loans at 80% ARV. They are 20 years notes with the first 10 years being fixed then year 11-20 is variable.