rental refinance (colorado) - Posted by doug

Posted by Dave T on June 19, 1999 at 13:12:47:

I suggest that you keep shopping for a lender. The local savings and loan may be able to give you a better rate and better terms. If you are taking cash out of the equity, you probably will pay higher loan fees. If you don’t need the cash and can refinance a lower LTV, then your loan costs should be cheaper.

You say that the existing loan(s) have a 15-year balloon. How long have you held these properties? How much equity do you have in them now? If your balloon is not due for quite some time, then it may be to your advantage to pay down your balance before refinancing.

If you can do a 75% LTV (or less) without taking cash out, you should be able to get a loan program with much cheaper costs. Remember that a non-conforming loan usually will be more expensive (rate and terms) than a conforming loan.

rental refinance (colorado) - Posted by doug

Posted by doug on June 18, 1999 at 15:19:55:

Hi all,

I’m in the process of refinancing a couple of rental properties - the notes are currently held by a private individual at 9% fixed for 25 years with a balloon in 15. To avoid having to deal with the balloon (since I want to hang on to these properties), I thought I’d go ahead and try to get a 30-yr fixed loan for them. I found a place through the web that has approved funding for both properties at 7.75% fixed for 30 years. However, I feel the lender wants exorbitant amounts for origination points - 3.5 for one property (at 90% ltv) and 4.5% for the other (at 80% ltv). Isn’t this a bit steep? I’ve refinanced before and only paid 1-2 points for origination fees, although the interest rates weren’t as good. Should I look around some more, or is this a reasonable deal considering the interest rate (and they aren’t coming down), the fact that these are rentals, and high the ltv on the properties?

Thanks for any comments!