Cash out refinance shopping -state of AZ

Phoenix, Arizona
Private Lending & Conventional Mortgage Advice
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Cash out refinance shopping -state of AZ

Sky LinPro Member
Rental Property Investor · Phoenix, AZ · Member since 2015 · 29 posts · 1 vote

Hello!

Thank you for such a great community and active forum!

I have gotten an offer from a lender on a Cash out refinance. I am fairly new to this and this is my first Cash out refinance. It would be a residential investment property loan, not LLC and not primary residence. medium personal income and high credit score(780).

The terms are 30 years fix @ 7.375% rate, 2.5% points and 75% LTV. Loan amount is $236,250. 

A. Origination charge: $7351

     2.5% of loan amount(point) $5906

      processing fee $1445

B. Service fee( appraisal and credit report fee) $657

C. Title and Escrow fee $855

Total loan cost: $8863

The property value is around 315k. Free & Clear.

1) Is this good, bad or average in todays lending climate? I am especially thinking about the 7% rate, I have heard rumors that it's still possible to obtain 6%-ers.

2) Any tips or referrals for lenders who can outperform this offer? Must be able to operate in the state of Arizona.

Please and thank you.

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Jeremy HoldenBusiness Member
Real Estate Agent · Scottsdale, AZ · Member since 2021 · 155 posts · 90 votes
3y

@Grant Schroeder

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  • Kevin Woodard
    Lender · Nationwide · Member since 2021 · 220 posts · 105 votes
    3y

    I think it would be worth shopping around. If you're putting that in your personal name especially. Things change but at par rate (no points) I have a deal closing just under 7 (6.9375%). 75% LTV and 1.1 DSCR.

    Hope this puts things into perspective.

    0Reply
  • Paul DefnginPro Member
    Lender · Rockville, MD · Member since 2008 · 498 posts · 199 votes
    3y
    Quote from @Sky Lin:

    Hello!

    Thank you for such a great community and active forum!

    I have gotten an offer from a lender on a Cash out refinance. I am fairly new to this and this is my first Cash out refinance. It would be a residential investment property loan, not LLC and not primary residence. medium personal income and high credit score(780).

    The terms are 30 years fix @ 7.375% rate, 2.5% points and 75% LTV. Loan amount is $236,250. 

    A. Origination charge: $7351

         2.5% of loan amount(point) $5906

          processing fee $1445

    B. Service fee( appraisal and credit report fee) $657

    C. Title and Escrow fee $855

    Total loan cost: $8863

    The property value is around 315k. Free & Clear.

    1) Is this good, bad or average in todays lending climate? I am especially thinking about the 7% rate, I have heard rumors that it's still possible to obtain 6%-ers.

    2) Any tips or referrals for lenders who can outperform this offer? Must be able to operate in the state of Arizona.

    Please and thank you.


    I would check your Federal Credit Unions in the area for this as they do not follow agency (GSE's) guidelines and will probably have less Loan Level Pricing Adjustments - and you may just be able to shave off some of that costs, and probably improved rates. Good luck.  

    0Reply
  • Jeremy HoldenBusiness Member
    Real Estate Agent · Scottsdale, AZ · Member since 2021 · 155 posts · 90 votes
    3y

    @Grant Schroeder

    1Reply
  • Grant SchroederPro Member
    Lender · OR ID AZ CA WA CO NV TN MT · Member since 2018 · 598 posts · 312 votes
    3y

    Thank you for the shoutout @Jeremy Holden! @Sky Lin I work with Jeremy in AZ and I am an investor myself. The primary clients I work with are investors and house hackers. I would be glad to take a look at this scenario for you and hop on a phone call tomorrow to walk through the details. We have a loan solution that would even allow you to cash out up to 85% LTV if you would like to. We are a direct portfolio lender and mortgage broker with more tools in our tool belt than typical banks and retail lenders.

    [email protected]541-231-1256
    1Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Sky Lin:

    Hello!

    Thank you for such a great community and active forum!

    I have gotten an offer from a lender on a Cash out refinance. I am fairly new to this and this is my first Cash out refinance. It would be a residential investment property loan, not LLC and not primary residence. medium personal income and high credit score(780).

    The terms are 30 years fix @ 7.375% rate, 2.5% points and 75% LTV. Loan amount is $236,250. 

    A. Origination charge: $7351

         2.5% of loan amount(point) $5906

          processing fee $1445

    B. Service fee( appraisal and credit report fee) $657

    C. Title and Escrow fee $855

    Total loan cost: $8863

    The property value is around 315k. Free & Clear.

    1) Is this good, bad or average in todays lending climate? I am especially thinking about the 7% rate, I have heard rumors that it's still possible to obtain 6%-ers.

    2) Any tips or referrals for lenders who can outperform this offer? Must be able to operate in the state of Arizona.

    Please and thank you.


     Hey Sky, 

    Is this a quote for a DSCR loan or a conventional investment property loan? Also is this rate locked or floating?

    Also what is your goal? Are you looking for the lowest monthly payment for a few years because of the climate and then refinance or a fixed loan for years to come? 

    Lots of questions here

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Jillian ShulerPro Member
    Member since 2019 · 17 posts · 8 votes
    3y

    Are you able to lend in PA? If so I need to cash out refi my duplex. My old lender used to give me 80% LTV and the bank just took it down to 75%. When running numbers was banking on 80%LTV, so now I'm shopping lenders! My duplex is in my LLC. Thanks!!

    0Reply
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