I have been hoping to take advantage of the low mortgage rates and have just sold one of my flips and believe I am in position to do so. I own 4 other houses. (primary residence, single family rental, two family rental and a four family rental) I want to refi 3 of the 4 houses. I do not want to refi the 3 family.
Okay so on the properties I would like to refi I owe 405,000 total and they are worth 525,000.
I would have to redistribute the equity to keep them all under 80% LTV. Is this possible?
My total rents are $6050.00
If I were able to refinance the three houses @ 4% my total PITI would be about $4402.00. That includes the 3 family I am not refinancing.
I have no other loans. No credit cards, no car payment.
I talked to one lender who was very inexperienced and had trouble answering my questions. I was lucky enough in the past to not run into this. But I have not gotten a mortgage in years and I no longer have a guy for that?
If you owe $405K. How did you determined they are worth $525K? Most banks will do appraisal before they refinance.
I used CMAs from a real estate agent. I am not to worried about values as long as I can redistribute equity. My 3 family is not included because it has little to no equity, but it does generate the most rent.
Do you know if I closed on all the properties on the same day with the same lender if that is a possibility?
First I would try with your existing lender on those homes. That’s how I just did 4 refi’s.
Otherwise I would try your small local friendly business bank. See if they like your financials, want your business, and are they willing to put on a BLANKET MORTGAGE that will encumber all the properties.
This will be more of a commercial-type loan with a renewable term, maybe 10-15 year amortization, and it will cost you 1-2 points (1%-2% of loan amount).
The appraisals, especially on the multiple units, will be expensive–maybe $1200-$2500. I am going by my local area.
First your existing lenders.
Then call up and make an appointment with your small local bankers. Bring your tax returns and financial statement and rental roster to each appointment. I would hit 3 banks if you could. Then compare. Now you should have enough information to make a decision. Just be sure to think it over, no snap agreements. Local bankers have the authority to negotiate a little on rates and terms. If they like you and your business.
Good luck and please educate us after you do this.
The more info you provide the bankers that you can re-pay the loan the better rates you will get and the chances the bankers will take a chance on you. The bankers always like to see verifiable references that you done business and have a pay history with.