I started with a 6.125% feb of 2019, refi to a 4.825% January of 2020. This week i took advantage of these low rates and secured a 3.625 % on a 4 plex non owner occupied investment property. just curious to see what your intreset rate is on your investment property? My Broker says that we may have already hit the bottom, Seems like the 10 year bond has been trending up , making interest rates higher as well. On top of all that, this past wed 8/12/20 Mark Calabria basically introduced a " Refinance Tax" of 0.5% ( half a point) on all refis! Lucky for me i barley made the cut off. please share your thoughts
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
6y
My last re-finance was at about 7%, mainly because I own properties in an LLC. That is still cheap money. The 3.625% that you got is simply unheard of historically. Be thankful you got that low of a rate and don't expect these ultra low rates to continue forever.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
6y
My last re-finance was at about 7%, mainly because I own properties in an LLC. That is still cheap money. The 3.625% that you got is simply unheard of historically. Be thankful you got that low of a rate and don't expect these ultra low rates to continue forever.
My last re-finance was at about 7%, mainly because I own properties in an LLC. That is still cheap money. The 3.625% that you got is simply unheard of historically. Be thankful you got that low of a rate and don't expect these ultra low rates to continue forever.
you are right, only thing that concerns me, is all my equity essentially being tied up now. If i was to ever do a cash-out refi in the future i would have to give up such a low rate. I guess its a bitter sweet filling
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
6y
@Maurice Smith the best way to look at it is, What is your return on investment of the borrowed money? If you are trying to finance say $100K of equity out of a property, what is the total cost of that refinance and how much money will it earn you?
If you have to borrow at 8% and you can earn 20% on that money, the fact you are paying a higher interest rate doesn't really matter. While it is not always that easy, the return on the money is more important than the cost of the money.