re-fi up to 85-90%. What can I expect?

Hey all,

I want to re-fi my sfr rehab I just completed. I have a T/B going in there at 700.00 a month with 2.5K down for a deposit. My mort. is 56.4K at prime on a nine month note, interest only. My credit is mid 7’s and dti is solid.

What can I expect for fees, rates, terms, etc.?


So you’re looking for a 90%ltv cashout refi on an investment property, do i have this correct? what is the new appraised value?

Correct. I have not done an appraisal. I will get one done when I re-fi. I have solid comps, listed and sold in the past 3-6 months, that put the home in the 88-93K range. Again I sold it for 89.5K.


I would suggest keeping that ltv at or under 80% otherwise your going to see a rate higher than what you currently have. If it’s an option I would rate term refi at or bellow 80% and then open up a no closing cost HELOC for the remainder.

Good point 4EEM but what about the rate on the HELOC? I wonder if I wouldn’t be better at going 85%LTV on a first mortgage rate at 7.5-8%? I see you mentioning these no cost HELOC’s. I will ask the local banks about those.


Rate depends on a number of factor, but you can expect a range of prime to prime +2. The rate is kind not relevant if you don’ t draw on the line, but even if you do draw down the whole line (not the best idea) your “blended rate” or combined payment would probably still be lower than if you went with one loan.

Confused? Did you exercise your option, because you use tenant buyers.
Do you currently hold title to property ?

at the figures you have mentioned you might just be better off going with a conventional loan and paying the PMI. you can get rates in the 6’s now since the bond has dropped recently.