Refinancing / rate/points

[Rick Oaks]

With the historically low rate that we are receiving right now is anybody else refinancing their properties. I spoke to my main loan guy and he told me that yes the rates are low but you are going to have to pay points which really doesn’t give me an advantage. Loans are now

350k @ 4.87

250k @ 4.87

350k @ 3.75

[Bradley Padula]

It will range based on LTV and credit score. At 80% LTV seeing anywhere from 2 to 3 points based on what lender talk to. Rates and points improve at the 75% LTV rate and lower. Lenders have mentioned any LTV higher than 75% is getting hit with a covid risk based fee essentially because of so many forebarences, there isn't a large appetite by investors for these rental property loans. Also "Fannie Mae and Freddie Mac instituted a new "Adverse Market RefinanceFee.” It adds a 50 basis points fee (0.5%) to most mortgage refinances starting Sept. 1, 2020"

https://nationalmortgageprofessional.com/news/75745/fannie-freddie-refis#:~:text=Fannie%20Mae%20and%20Freddie%20Mac,a%20refinanced%20mortgage%20by%20%241%2C400.