I'm rehabbing a property that I bought in Mesquite using Hard Money. The property will finish rehab Apr 17. Now, I want to refinance out of that property using a lender/bank. I'm working with a bank who will refi it but the rates are too high 5.5%. What's a good interest rate I can get for such properties?

Who have you folks used as lenders for such refis? Many thanks in advance.

If it is a commercial loan, then 5.5% is about right.  

@Yash Ranadive That doesn't seem crazy high or anything

Rate seems about right, but you also need to consider LTV, term and amortization--all of which affect your cash flow. Too many get hypnotized by the rate when it's cash in your pocket that determines the value of a deal.

@Yash Ranadive Hello! I am assuming that you are doing a full documentation loan program? As in they are requiring your income information and qualifying you off your personal liabilities?

Keep in mind that there are certain pricing hits that occur that are included in rate. For your situation they would be "cash out" and "non owner occupied." This means that you cannot compare it to a loan that would you use for your own personal use to purchase.

A 5.5% rate is pretty darn good. I work with alot of investors doing the same thing and I see rates that are normally 6.5% and higher. These are good rates too specifically because they are loans for no documentation required and no seasoning for title.

This is not a commercial loan. This is my first investment property and I haven't used by my 10 loans yet. A friend of mine got a 4.8% rate last month with a private investment group/bank in Phoenix. I don't know the details but looks like that is not common.

Also I want to make sure that there are no seasoning terms. Do credit unions handle this kind of refinances? 

Some credit unions do, some don't. You just have to ask. Many won't fund repair costs, and need at least six month seasoning. 75% LTV and no LLCs. Start dialing for dollars.

Originally posted by @Yash Ranadive :

I'm rehabbing a property that I bought in Mesquite using Hard Money. The property will finish rehab Apr 17. Now, I want to refinance out of that property using a lender/bank. I'm working with a bank who will refi it but the rates are too high 5.5%. What's a good interest rate I can get for such properties?

Who have you folks used as lenders for such refis? Many thanks in advance.

 5.5 is not high.  

Originally posted by @Yash Ranadive :

This is not a commercial loan. This is my first investment property and I haven't used by my 10 loans yet. A friend of mine got a 4.8% rate last month with a private investment group/bank in Phoenix. I don't know the details but looks like that is not common.

Also I want to make sure that there are no seasoning terms. Do credit unions handle this kind of refinances? 

 5.5 with no seasoning won't be a Fannie/Freddie backed loan, so it will be even higher.  The only place I can remotely think you may be able to get something like that would be a local (and I mean local) bank.

Thanks folks for the comments. It puts things in perspective.