BRRRR Re-fi in Maine

[Bernie Huckestein]

I've found a local bank who will re-fi a property after 6 months seasoning.  Its a portfolio lender offering 30 year amort with fixed rate or 6.25 (first one I have found offering a 30 year fixed).  The rate is a bit high and is based on 750+ credit but from what I have found so far for a more reasonable rate fixed 30 year loan it has to be one sold to the secondary market --  problem with that is the upfront fees for a secondary market loan a much much higher.  I'm planning to keep the property for 6 or 7 years so I would re-coup this in about 4 years but that takes away from available cash for the next project today.

I've found these secondary market fees for investment property to be fairly standard but appreciate thoughts from others.  Is this standard?  Should I keep looking?

I do have another bank who will do 4.5% 3/1 20 year amort (portfolio) for very low fees so that is an option but if kept for 6 years the rate could jump quite high, I'd rather know the payment amount for the life of ownership.

Do I need to keep looking for a better rate or less upfront secondary market loan or is this standard?

Appreciate thoughts - thanks, b

[Kenneth Garrett]

@Bernie Huckestein

Hi Bernie, I use commercial loans for my single and duplex rentals. Last loan was last month 5.15% at 25 years, 5 year balloon. Credit score not so important only the project numbers. If your DSCR numbers are close to 1.70 they will do 80% LTV.

Look for small local banks.  They are much easier to work with.

Good Luck.