How Easy To Refinance An Investment Property.

Comments(4)

• 
  InActive_Account10th May, 2005

  The rates that you currantly have are pretty darn good! Most Lenders will require a Min. of 90% LTV and I doubt you will find a better rate than 5.875%. The second mortgage is also a good deal, depending on the dollar amount of that second note. I personally would hold on to this deal as long as possible providing your cash flow from the rent makes sence. Also consider the cost involved with the closing cost associated with a refi....weigh out the options.

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  mojojojo_110th May, 2005

  Knowing that investment properties carry extra risk in the banks eyes, and often carry higher rates to show it, it sounds good. the second might be lowered, check into that. here are the rates for us bank. 2nds lines start at 6.5% for 90% ltv, non primary might tack on an extra percent.
  
  Rates viewed on 5/10/2005
  
  
  
  
  
  
  
  
  
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  Product Rate Discount Origination APR Mo.Pmt per $1000
  Conforming Fixed - 30 Year
  origniation
  5.500% 0.000% 1.000% 5.635% 5.68
  5.750% 0.000% 0.000% 5.796% 5.84
  
  the early closure on your current loans might be pretty steep too. something to look at

• 
  mcole11th May, 2005

  Greetings ciroma,
  
  As has been pointed out, your rates are actually pretty good.
  
  If you wanted to roll your two loans into a single loan, you might be better off waiting until you have a little more equity, as you would need at least a 95% LTV loan at this point. You would also want to make sure you got one without mortgage insurance.
  
  You don’t say how much your 2nd is. Or, how long you plan to hold the property. But if you’re looking to do some sort a combo loan, you may be able to make an Interest Only or Option ARM work for you. But these can be risky if you plan to hold the property for a long period of time. And not too many lenders are willing to put a 2nd TD behind one of these loans.
  
  The other thing to keep in mind, you only have a few months title seasoning -- which will further limit your options as to which lenders you could use.
  
  And as 322houses brings up, when you factor in the closing costs, writing a new loan right now could eat up a good chunk of your existing equity.
  
  I would probably just sit tight for a while

• 
  mojojojo_111th May, 2005

  WOW, sounds dangerous...