Mortgage refi question for an investor...
Ok first a little background.I purchased a investment property (REO) 5 months ago for $80k (cash) which needed a little work, which I fixed up and rented out. The property is leased out for 2 years at $1250 a month. I pay $130 a month for lawn and pool maintenance. The taxes for the property are $2350 a year (is coming down slightly each year). I am self employed, with a good credit score (790+), and own 3 other properties (2 outright-1 has a mortgage on it). I think with the renovations, the property could easily be appraised at $100k. The property was appraised prior to the purchase at $89k and is fully insured.Here is my question.I'd like to take out a 15year fixed mortgage on the property, so that I can use the liquidity to invest in other properties. What are my best options? What rates can I expect to get? Are banks/credit unions willing to lend on investment properties yet?Thanks. Any info is appreciated. by investteee1 from East Peoria, Illinois. Apr 4th 2011
John Schweer (johnschweer)
#9 ranked lender in Missouri - 163 contributions
based on the above answers its really in the middle, best execution on your question would put you in the 4.25-4.5% assuming no points, but you could buy the rate down into the upper 3's . Google Rate Compare is a great tool for this.
Dan Paladin (dpaladin)
#356 ranked lender in California - 792 contributions
Yes..loans are available for what you describe...cash out typically requires waiting 6 months...which you should hit soon. Typical LTV will be 75%. Rate should be approx. 3.875% to 4.0%. You did not mention what state. If you care to discuss further feel free to contact me at 877-369-4319.
Gianni Cerretani (mortgagegodfather)
#32 ranked lender in Georgia - 238 contributions
The most important issue you have to look at is your income. You mentioned you are self employed. I know that can tend to bring on a very low AGI ( adjusted gross income)- rates will not be in the 3's- most likely you are looking at high 4's low 5's to be realistic- that answer above is out of date! The best suggestion I can make is to have your debt to income ratio looked at before attempting to buy anything else that way you know what you can afford with conventional lending with rates as they are today. There were and still are major changes occuring in our industry and you need to be up todate every day in order to get accurate rate quotes. i am happy to help in whatever way I can.Gianni CerretaniSenior mortgage bankerFirst Community Mortgage, a division of First Community Bank of Bedford Countydirect-678-381-2264cell- 404-213-9662e-mail- gianni.cerretani@fcmhomeloans.comwebsite- www.fcmhomeloans.com
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