Refi Advice, This Is My Situation...
I need to refi, however I came to this opinion kind of late I suppose. Well what can I do. This is my situation one I have inherited from my mother:
I need to cash out about 200K to pay off a debt.
I need to consolidate my other mortgages to improve cash flow, I think.
Assets V.S. Liabilities
Home value 300K loan 23K @ 4% fixed with 20 year left.
Apt bldg. value 250K loan 11K @ 7% vairable
Apt bldg. value 250K loan 27K @ 11.45 fixed with 6 years left
Apt bldg. value 200K loan 60K @ 8.75 fixed with 9 years left
Apt bldg. value 300K loan of 27K @ 4% fixed with 20 years left
Apt. bldg. value 250K loan of 185K must be paid off now.
Farm bldg. value 200K loan of 47K @ .25 under prime with 20 years left
What should I do? How should I structure my refinancing? Who should I approach to take on something like this? A bank or a mortgage broker?
Thanks!
sounds like plenty of equity just depends on which to choose from.
Wish I had your problem! What do you want to do? Why refi? If you have a use for the money, better get crackin' rates are a'movin.
If the one building is worth 250k and has 185k existing, Sell it... ask for 15k down and carry back a second of what ever amount you feel comfortable with. I would sell it at maybe 230k if you wanted to move it quickly. Use the 15k to pay off your remaining debt (I'm assuming 185 of the 200k is from the apt building).
On the others, maybe you can refinance to cash out then do a 1031 exchange for 1 or 2 larger apt. buildings. Less buildings may be easier to manage.
If you are going to sell any of these, let me know I may be interested. Where are they located?
Thanks for the advice. I can't really sell one of them individually because they are all in a row and have more value than stated hear if sold as a developmental land. The buildings are small two or three unit apart. bldgs.
Should I refi using a conventional fixed 30 or a 5/1 or 6 month fixed based on the libor or US treasury? Which is best if I am not sure of at what point I may sell? Of course if some one offers me 5M for them all based upon a 100 unit complex there gone but if I otherwise I think I will wait and do the development myself in the furture.
Thus what is the best refi structure to allow me to buy time and keep COH.
thanks
Sorry fo taking so long to get back to you.
The answer to your question is a tricky one... If you are not sure how long you are going to keep it Its kind of hard to tell you the best term to go with. If your concern is to net a higher return, then your best bet is to go with a 3/1, 5/1, or 7/1. As far as index is concerned, the LIBOR is great...MTA is not too bad either. Theres no telling how the indexes are going to go these days. So I would stay away from an ARM that does not have some fixed period in it. Feasably, you could see your rate jump 4 points in one year.
Let me know if you need help getting a quote. Privagte message me with your contact# and I'll give you a ring.