Refinancing for INVESTMENT property

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aparan
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Refinancing for INVESTMENT property

Post by aparan » Sat Jun 20, 2020 12:05 pm

Saw couple of threads on primary homes with better.com, Lenderf1 etc. I will check them out

Pl post anyone's experience in getting a good mortgage deal on a investment property. I am looking for something like 5 year or 7 year or at 10 year preferably

frankandbeans
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Re: Refinancing for INVESTMENT property

Post by frankandbeans » Sat Jun 20, 2020 1:51 pm

Closed earlier this week @ 2.875/15 year with Northpointe.

Topic Author
aparan
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Re: Refinancing for INVESTMENT property

Post by aparan » Mon Jun 29, 2020 3:16 pm

That's a great rate for investment home.

Anyone else? btw Better.com changed their competitor price beating to just $100. Earlier it was $1000

xerxes101
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Re: Refinancing for INVESTMENT property

Post by xerxes101 » Mon Jun 29, 2020 6:19 pm

frankandbeans wrote:
Sat Jun 20, 2020 1:51 pm
Closed earlier this week @ 2.875/15 year with Northpointe.
what were the closing costs, do u mind sharing?

frankandbeans
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Re: Refinancing for INVESTMENT property

Post by frankandbeans » Wed Jul 01, 2020 8:47 am

xerxes101 wrote:
Mon Jun 29, 2020 6:19 pm
frankandbeans wrote:
Sat Jun 20, 2020 1:51 pm
Closed earlier this week @ 2.875/15 year with Northpointe.
what were the closing costs, do u mind sharing?
Net out of pocket was just under $3k. 0 points, about $1000 in origination charges.

oldmotos
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Re: Refinancing for INVESTMENT property

Post by oldmotos » Wed Jul 01, 2020 4:00 pm

Following. I have a 100k loan on our home at 3.25% interest but am unable to deduct the interest. I would like to borrow 100K on a commercial building I rent out and pay off my home loan. Our local banks charge more for commercial loans than residential. Are there any national companies that do these type loans at competitive rates?

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Re: Refinancing for INVESTMENT property

Post by 123 » Wed Jul 01, 2020 4:19 pm

oldmotos wrote:
Wed Jul 01, 2020 4:00 pm
...Our local banks charge more for commercial loans than residential. Are there any national companies that do these type loans at competitive rates?
Commercial loans will always have a higher rate than a home loan because all lenders know there is generally more risk in a commercial loan than a home loan. You yourself want to pay off your home and borrow on another property to do it.
The closest helping hand is at the end of your own arm.

xerxes101
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Re: Refinancing for INVESTMENT property

Post by xerxes101 » Wed Jul 01, 2020 5:55 pm

oldmotos wrote:
Wed Jul 01, 2020 4:00 pm
Following. I have a 100k loan on our home at 3.25% interest but am unable to deduct the interest. I would like to borrow 100K on a commercial building I rent out and pay off my home loan. Our local banks charge more for commercial loans than residential. Are there any national companies that do these type loans at competitive rates?
This one frankandbeans is talking about sounds pretty competitive to me. I contacted a Nortpointe agent and asked him if I could get this 2.875%, 15 year fixed rate, but he is asking me to provide him with the quote.... :shock: ...I wonder if there is a way to get him to match this deal?

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Re: Refinancing for INVESTMENT property

Post by abuss368 » Wed Jul 01, 2020 6:18 pm

aparan wrote:
Sat Jun 20, 2020 12:05 pm
Saw couple of threads on primary homes with better.com, Lenderf1 etc. I will check them out

Pl post anyone's experience in getting a good mortgage deal on a investment property. I am looking for something like 5 year or 7 year or at 10 year preferably
Have you considered buying Vanguard REIT instead for real estate exposure?
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

frankandbeans
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Re: Refinancing for INVESTMENT property

Post by frankandbeans » Wed Jul 01, 2020 6:39 pm

xerxes101 wrote:
Wed Jul 01, 2020 5:55 pm
oldmotos wrote:
Wed Jul 01, 2020 4:00 pm
Following. I have a 100k loan on our home at 3.25% interest but am unable to deduct the interest. I would like to borrow 100K on a commercial building I rent out and pay off my home loan. Our local banks charge more for commercial loans than residential. Are there any national companies that do these type loans at competitive rates?
This one frankandbeans is talking about sounds pretty competitive to me. I contacted a Nortpointe agent and asked him if I could get this 2.875%, 15 year fixed rate, but he is asking me to provide him with the quote.... :shock: ...I wonder if there is a way to get him to match this deal?
FWIW, I locked in early April so they wouldn't match now anyway.

oldmotos
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Re: Refinancing for INVESTMENT property

Post by oldmotos » Wed Jul 01, 2020 9:37 pm

Commercial loans will always have a higher rate than a home loan because all lenders know there is generally more risk in a commercial loan than a home loan. You yourself want to pay off your home and borrow on another property to do it.
In my case I believe the commercial loan would be much less risky than the average home loan as I would be borrowing 100k on a 200k building with stable tenants. The fact that I want to pay off my home loan does not in any way make it more risky - just a reflection of tax laws. I have other paid for commercial properties that I could also offer as collateral so I would have over 400k of property securing a 100k loan.

xerxes101
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Re: Refinancing for INVESTMENT property

Post by xerxes101 » Thu Jul 02, 2020 9:42 am

frankandbeans wrote:
Wed Jul 01, 2020 6:39 pm
xerxes101 wrote:
Wed Jul 01, 2020 5:55 pm
oldmotos wrote:
Wed Jul 01, 2020 4:00 pm
Following. I have a 100k loan on our home at 3.25% interest but am unable to deduct the interest. I would like to borrow 100K on a commercial building I rent out and pay off my home loan. Our local banks charge more for commercial loans than residential. Are there any national companies that do these type loans at competitive rates?
This one frankandbeans is talking about sounds pretty competitive to me. I contacted a Nortpointe agent and asked him if I could get this 2.875%, 15 year fixed rate, but he is asking me to provide him with the quote.... :shock: ...I wonder if there is a way to get him to match this deal?
FWIW, I locked in early April so they wouldn't match now anyway.
Thanks for that data point. I was looking at the refinance mega thread which is mostly for non-investment property mortgages and some people are raving about the low rates they got...I was hoping some of those historically low rates would transfer into the investment property offerings as well.

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