I was thinking of doing a refinance on my rental for the 1st time and I was quoted a ballpark of 11%. Is this unusually high or are HELOCs for rentals usually higher.
Thanks in advance for assisting.
Is it a refi or a HELOC??
A refi means that you are refinanncing usually for a different rate or with a different lender or for a different term (like from 30 years to 15 years)…a HELOC is a line of credit, usually via a second mortgage and often they just give you a checkbook and you can write checks to your limit…if you don’t use it you don’t get charged for it. Also a lot of lenders won’t do a HELOC for a rental because it’s not your “home”…
The terms are not interchangeable…
I cash-out refi at about 6 to 6.25%…if it’s a refi, you’re getting jammed…HELOCs are usually fairly low, too…maybe 7% or so.
Is your credit damaged?
Keith
I may be able to help. What state are you located in? Let me know!
I am in Virginia. I do have a good credit. Just too many inquiries have dropped my score. Middle score is 680 now. No late payments, everything else is perfect. I need to cash out hopefully about 90% - 95% if possible.
With that score and LTV you should not have any problems getting a better rate than a 11%. It depends though on the rest of your loan parameters. (income, Debt to income, etc.)
It will probably be difficult to get a LOC but refinancing to a higher LTV should not be a problem at all 
Is this rental a 5 Unit+?
Otherwise, like Mdhass said, “you should have no problems”.
Regards,
Pat Lawson
I agree- if you are 1-4 units, the rate should be drastically lower. Cash out would result in a higher rate than rate and term (no cash out0, but definitely not 11%.