All Forum Posts by: Stephanie P.

Hello- I am currently in the process of refinancing and was hoping some investors could give me some advice. 

Here are some details on the situation:

6 months ago we purchased a fixer duplex in Seattle area for 715k, we put 5% down. We put about 100k into it, and now got it reappraised in hopes to cash out to a 80% ltv.

It appraised at 1.1Million. At 80% ltv our loan amount is going to be be 880k and in the jumbo category (which dramatically increases the cost of loan)

Our goal is to cash out as much as possible, so we can moved out of this property, have a cash flowing deal and do it again, but don't know what to do, and don't want to pay the steep prices of a jumbo loan. Someone mentioned to us doing a HELOC instead? Any advice would be helpful!

BRRR....How do I get the refi part? I have been turned down. I NEED A cash out refi based on the value of the asset not my income. The homes are rented,.

Hello, just want to hear your advice if cash out refi is a smart move to fund the next investment property even if it means the mortgage will increase? We currently own 2 single home properties (one is rental and one is primary residence). Is it better to cash out refi the residence or the rental?   Our goal is to build our real estate portfolio and thinking on investing into fourplexes next. 

Thank you! 

-Mary

This will be a primary residence for us. First time home buyers. I dont know how to check the legitimacy of the private lender. They have a website.

Extremely late. Thanks for the advice. I got locked into a good rate now and I am closing this upcoming week on a refi. 🤞🏽 @Stephanie P.

Hi BP,

I know most people here with multiple properties have dealt with this situation. Over the past 18 months I have acquired 4 rental properties, refinanced my home, and opened a HELOC. All good things, except my credit took a hit due to the recency of all these open lines. Prior to investing my score was always between 780-800, now I'm sitting at 660. Does anyone who has been in this situation before have any strategies they used to improve their score while continuing to invest and use mortgages as leverage? It's wild to me that owning 5 hard assets all with over 30% equity that pay me monthly can hurt my credit score. I guess it's just the rules of the game we play…

Thanks!

1. When you decide to refinance, is it the appraiser that determines how much the home is worth? 

2. Let's say you bought the house for 80K and you refinance for 100K (fake easy numbers). After paying that initial 80K loan off, can that extra 20K be used for anything or does it have to be expenses related to that specific home? 

3. VA Loan specifically, if I were to refinance from VA to conventional I'm guessing I would have to pay 3.5% minimal of the new loan?

Investment property 4 unit with 70% LTV cash out and 740+ credit can get you a convention loan for 3.375% at ZERO points APR 3.483%. So take that point away and drop the rate 1%. So no that's not what "Fannie Mae rates" are right now. For some lenders yes they are that bad with pricing but that's pretty much the top of the range, which means the least competitive. If you can't find something better than 4.375% for a point then maybe you have 680 credit? I re-ran my search with 680 and it would be 4.375% with no points, APR 4.412.

This is not an advertisement, just quoting rates from my pricing engine to help ya'll out.

I'm attempting to refinance a 2-unit rental property I've paid down over 15 years, but feeling discouraged. Currently there is 150k left on the mortgage at a high interest rate of 5.5% at a fixed 30, and I was hoping to lock in lower rates offered to take some pressure off the monthly mortgage payment and increasing property taxes. 

When I approached the same major bank currently handling my mortgage, they told me I'd easily be approved for a 150k loan, cutting my monthly payment in half, and locking me in a 15 year rate of 2.8- 2.9% instead of my current terrible 5.5% rate. But now I hit a snag because I'm self-employed and they require two years of tax returns for self-employed.

The issue is my 2019 tax return features a stint on unemployment after a corporate layoff, and then in 2020 I changed industries earning at first 50k as an independent contractor, but now in 2021, this industry change led to considerably more income for 2021 (100k+). I'm essentially earning more as an independent contractor than I ever did as an enterprise employee, but because I can't file my taxes for 2021 yet, then only my 2019 and 2020 income will be considered making me unqualified, despite an 851 credit score and no debt other than current mortgage of 150k.  

I asked if I could prove Year-to-Date earnings with my contracts, invoices, and bank statements, but they said underwriters always fail these exceptions for self-employed. Am I really stuck in applying for these rates until February or March reflect 2020 and 2021? 

I'm so worried it's my last chance for these rates.