Refinance options for my 3 - family in Chelsea, MA

[Jared K.]

Not happy with my current Mortgage broker, he waited too long and gave me the runaround about cash out refinancing then left me hanging as interest rates started to rocket up. I've got a 3 family in Chelsea, MA with about 25% equity, my DTI is under 50%, I have an FHA loan and I want to free it up so I can use it in the near future again, so I want to get into a commercial loan. Need to understand if this is still worth it or even possible at current rates...my interest rate is 2.875 % so even if I get a commercial loan and stop paying mortgage insurance I'll likely need to still pay more a month than what I'm paying now, but may be worth it to free up the FHA loan for future purchases. Would love to talk to someone knowledgeable about investing and go over options with me. Any recommends?

[Paul Crosby II]

Hey Jared! I would agree with you as i was in the same boat with a single family that i bought FHA at a 2.875. I believe you mean a conventional loan instead of commerical but im not sure.

I would definitely suggest freeing up the FHA loan because while the low interest rate is nice, your effective interest rate is much higher with the MIP.

Usually the extra cash you can get by using the loan for a new property far outweighs the cost of a couple hundred on the int rate plus if you time the refinance properly you can squeeze up to 2 months without making mortgage payments.

Hope that helps!