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Updated 29 days ago, 10/31/2024
2nd Lien Line of Credit on a Rental - Acceptable amount of fees?
I'm renewing my LOC on one of my rentals with a local community bank through their commercial banking dept. They want 1% origination points plus a bunch of other usual fees like title work. They already did the title work when i got it originally, I'm not asking for an increase or anything. Real estate here has exploded in the 3 years since I got the LOC.
paying 5 - 7% in fees for a $95k or so LOC seems ridiculous to me??
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- Lake Oswego OR Summerlin, NV
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#5 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
just be thankful you can get one at all. most banks simply dont offer these.
- Jay Hinrichs
- Podcast Guest on Show #222
Quote from @Allan Smith:
I'm renewing my LOC on one of my rentals with a local community bank through their commercial banking dept. They want 1% origination points plus a bunch of other usual fees like title work. They already did the title work when i got it originally, I'm not asking for an increase or anything. Real estate here has exploded in the 3 years since I got the LOC.
paying 5 - 7% in fees for a $95k or so LOC seems ridiculous to me??
It is expensive but money is not cheap at all nowadays and as others mentioned even getting a LOC against a rental property is a huge score as not many lenders are lending on that product.
Question I have is what are you using the $ for and can you earn it back?
- Chris Seveney
