Refinance recommendations for Investment property

[Adam Braddock]

Hello BP community,

We're not finding any great refinance options in the Seattle area for investment property. We have about 600k in equity in one of our projects (4 townhomes), and we'd like to take some of that out for more investment. However the lenders we've spoken with are quoting rates around 4.5% plus 3 points. If you've got a great investment property lender recommendation, we'd love to hear from you. Thanks!!

[Caroline Gerardo]

Lenders who sell everything they originate aren't offering them at all. Fannie and Freddie aren't buying. Treasury recently announced they are capping the non owner loans in the government coffers to 7%; both Fannie and Freddie have about 19%. Therefore a lender who originates non owner has to hold it. That rate is pretty standard. You will find that most don't have a buy up option (less points with higher rate) the 3 points you were quoted are like a prepayment penalty in reverse- charged up front. If your middle FICO is 800 you can get closer to 4.25 conforming with 2.75 points or 4.522 APR on a $300,000 loan 30 year fixed- as of yesterday at 4:00 markets are closed for Memorial Day weekend, rates change a couple times a day. this is not a commitment.