Refinance assistance

Monello

Yeah, whatever
PREMO Member
I thought about doing a refi on 1 of my rental properties. The current rate is 5.3%. I know I can get a better rate. Being mobile, I filled out an online form to see what rate I could get. Instead they called me. Long story short I had to answer a bunch of questions.

They offered me 3.25% for 20 years. I get some cash back. Payments would be a few bucks less than what I'm paying now. But the entire process made me feel like I was buying a used car. I'm don't have to do anything urgently. Vrai suggested I post on here to see what the forumites could shed light on.

Here's the particulars. Owe $98,000. Zillow home value is $294K. Quiken loans says their research shows it around $257K. My credit score came back as 813 today. I never filed bankruptcy and don't have any other loan except another mortgage on a different rental property.

So can I expect a better rate with someone else? I realize a rental property rate will be a bit higher than an owner occupied property rate. I should just sell it and buy a rock star bus with the proceeds. Then at the rate biden is going, gasoline will be $48 a quart here shortly.
 

RoseRed

American Beauty
PREMO Member
I'm going through this right now! I've been with NFCU since 2008 at 5.25%. I locked in at 2% (15 year) in late January. I just got the email that I go to closing 12 Apr. It shortens my time and saves me about $600 a month. I also don't have any debt, except mortgage, and 800 credit score.

Good luck!
 

Gilligan

#*! boat!
PREMO Member
I think the difference in rates between "income property" and "owner occupied" explains the rate you were offered. My compound has some of both but I never acknowledge the rental units when dealing with the mortgage companies..

I need to refi the one loan I have too....it's at 6.25%. ;-(
 

Clem72

Well-Known Member
I thought about doing a refi on 1 of my rental properties. The current rate is 5.3%. I know I can get a better rate. Being mobile, I filled out an online form to see what rate I could get. Instead they called me. Long story short I had to answer a bunch of questions.

They offered me 3.25% for 20 years. I get some cash back. Payments would be a few bucks less than what I'm paying now. But the entire process made me feel like I was buying a used car. I'm don't have to do anything urgently. Vrai suggested I post on here to see what the forumites could shed light on.

Here's the particulars. Owe $98,000. Zillow home value is $294K. Quiken loans says their research shows it around $257K. My credit score came back as 813 today. I never filed bankruptcy and don't have any other loan except another mortgage on a different rental property.

So can I expect a better rate with someone else? I realize a rental property rate will be a bit higher than an owner occupied property rate. I should just sell it and buy a rock star bus with the proceeds. Then at the rate biden is going, gasoline will be $48 a quart here shortly.

Rental property should mean higher insurance costs which if you are going to escrow means a higher payment, but it absolutely should not affect the rate you get. 3.25% seems high, a couple of months ago I almost pulled the trigger on 2.0%, but I have so little left on the mortgage that just paying the closing costs against my current principal ended up reducing amortized interest more than the refi.

General rule of thumb, a credit union can get you a quarter to half point better than a bank (but you'll need to become a member). Also, if they are trying to get you to take cash back then they are trying to lock you into the loan for longer than necessary or at a higher principal. It's a predatory practice which means they are also likely also not going to offer you the best rate possible.
 

Gilligan

#*! boat!
PREMO Member
If you can afford the monthly, see what a 10 or 15 year program looks like. Usually lower rates, higher monthly, but overall you can save a buttload of money.
That's where I'm headed...I want to refi the remainder of my loan for 10 years.
 

General Lee

Well-Known Member
I thought about doing a refi on 1 of my rental properties. The current rate is 5.3%. I know I can get a better rate. Being mobile, I filled out an online form to see what rate I could get. Instead they called me. Long story short I had to answer a bunch of questions.

They offered me 3.25% for 20 years. I get some cash back. Payments would be a few bucks less than what I'm paying now. But the entire process made me feel like I was buying a used car. I'm don't have to do anything urgently. Vrai suggested I post on here to see what the forumites could shed light on.

Here's the particulars. Owe $98,000. Zillow home value is $294K. Quiken loans says their research shows it around $257K. My credit score came back as 813 today. I never filed bankruptcy and don't have any other loan except another mortgage on a different rental property.

So can I expect a better rate with someone else? I realize a rental property rate will be a bit higher than an owner occupied property rate. I should just sell it and buy a rock star bus with the proceeds. Then at the rate biden is going, gasoline will be $48 a quart here shortly.
Shop around. You can do better than 5.25. 2% that rosered got right now is great. Check with better.com. You can refi all electronically and low fees
 

Monello

Yeah, whatever
PREMO Member
I got in touch with Chase yesterday. That is who I got the original loan from. I was seeing if it would be cheaper to refi with them. Right now they aren't making any loans for rental properties. That has been their policy for the last 4 months.

Even though I've never missed a payment with them in 11 years, the answer was still NO.

Quicken loans, with a quote of 3.25 comes with $7,800 in closing costs. That's a lot of dough to save a few percentage points. Those fees might be a deal breaker for me.
 

StadEMS3

Well-Known Member
I tried to refi my rental SFH from 5%. Owe less that 100K and Zillows at $350k with credit score well over 800. I get all sorts of we can do this until I tell them its an investment property then all the sudden they back away. Even the person that set me up the current loan was bragging on FB about the rates being crazy low and hit him up for refis. I called him and he said who gave me that rate we can do better, once I said rental, he stopped talking to me... as soon as my tenant moves out in 2022 I'm selling it anyway, done with Waldorf property!

I can imagine Uncle Joe standing by to collect his share when I sell it..ugh.
 

Monello

Yeah, whatever
PREMO Member
Did you try NFCU?
I did the online process yesterday. I got to the point where they wanted a credit card for my credit report. The other company pulled it up while we were talking on the phone. That's how I knew what my credit number was. Anyway, NFCU knows my FICO number. Every time I log on to their site my FICO is available on the dashboard. So until I pay up, I'm stuck at that point.

NFCU shows low rates. But as an investment property, they won't offer me the lowest rate. Since there's no urgency on my part to get this done ASAP, I'll mull it over before I proceed.
 

Gilligan

#*! boat!
PREMO Member
, once I said rental, he stopped talking to me...
I'm fortunate to have the rental apartments I still own on same property as my residence. That allows me the option of answering the inevitable "and do you occuppy the property" question with always a "yes".
 

Monello

Yeah, whatever
PREMO Member
Last week I got in touch with Chase Bank. The note I want to refinance is with them. I was told that for the last 4 months they are not allowed to offer any investment property refinances. It didn't matter that my note is already with them and I have never missed or been late with a payment for 11 years.

It looked like I was going to go with Quiken Loans. I gave them all the info. We were scheduled for a 9:30am phone call to discuss details. Around 8:45 I get a text from them saying that they also have stopped making investment property loans.

I'm a big believer that this clearly was something that wasn't meant to happen. At least not today with this company. So the search continues.
 

my-thyme

..if momma ain't happy...
Patron
With the gov steady pushing out the "can't evict" date, I'm sure getting a loan in rental property will be impossible.

That would be a very shaky prospect, if you're not generating income, maybe you won't pay your loan.

Financial history be damned.
 

my-thyme

..if momma ain't happy...
Patron
I believe that in a hundred years, only the very wealthy will own property. Most people will be housed in gov subsidized apartments.

Glad I'll be dead and gone.
 
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