What were your best Options for BRRRR ReFinancing?

Question

HI everyone, What are the best options for BRRRR Refinancing once you are ready to get the cash out? I'm wondering what options are out there that aren't going to cost an arm and a leg in lender fees. I found two scenarios but am wondering what everyone else is finding when doing their BRRRR Deals. Thanks everyone, look foward to your replies.

John Leavelle · Answer

Howdy @Aaron Frances

Local lender is best way to go.  They are usually less stringent and have more flexibility.  For your next BRRRR deal get pre-qualified or pre-approved for the Refinance loan prior to purchasing the property.  It makes the whole process a lot less stressful.  You also know the interest rates and terms up front which helps in your Cash Flow analysis.

Wesley C. · Answer

I use a local bank.  They require a 25 year loan.  Pretty easy process.  Usually pay little to no origination fees.  Closing costs about 1%.  Just monday they gave me ballpark quote of 4 to 4.5 percent on 25 year.

Aaron Frances · Answer

Nice, I wish I would have tried a local bank just to see what they would have quoted me at. From a mortgage lender I received a 4.75% APR @ a 2.5% origination fee plus a $1000 underwriting fees, and when I paid down the APR I was at $14k in closing cost just so I can get a 4.375 loan for 30 years. Found a lender who lends their own money and they are coming at me with $1300 Origination fee half the cost for underwriting and he says they are going to resell my mortgage and make more on the sale of it than charging me upfront cost of the loan. I guess another way of financing but i'm not complaining. I'll post how this one ends.