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.