Typical Refinancing Guidelines

[Jeff Roberts]

Hello,

After rehabbing a two-family in Cincinnati, I am now beginning to pursue a cash-out refinance. My initial discussion with Quicken has led me to believe that some of the governmental guidelines around these mortgages may have changed in the last year. My goal is a 30 yr mortgage at 70% LTV on a property value of about $130K. Obviously some of the issues revolve around max LTV and the minimum loan amount. The mortgage officer also indicated that a 70% LTV loan may be far more expensive than 60%. Can anyone comment on the typical constraints they are seeing for these loans?

Thanks

Jeff

[Joseph Cornwell]

@Jeff Roberts

I just did a cash out refi with Watch Hill Bank in Cincinnati. They offered an 80% LTV 3/1 or 5/1 ARM at 20 years AM. My rate was 4.5% with 10.5% cap, with 2% max adjust per year. I was very happy with my experience with them, and decided to use them on another commercial mortgage just a few weeks ago. I also spoke with a bank that offered a 25 yr AM, but lower LTV. So I guess it depending on whats most important, I did not find a bank that offered a cash out with 30 yr AM or a fixed rate. Best of luck!