Rate & Term Refi out of Private Money or HML Loan

[Zoran M.]

Hi All, 

I wanted to get the community's take on rate & term refinancing out of a private money loan.  Have any of you been able to do so after the necessary 6-12 month seasoning period? What has been your experience? 

My current strategy is to use private money to purchase/rehab a property.  A mortgage is publicly recorded with the intention of a rate&term after the property has been rehabbed and occupied.  I am working with a local portfolio lender w/ six month seasoning. 

The terms seem much more favorable (w/ my bank) than a cash-out refi. For example, they will go 75% LTV on a rate&term vs. 70% for cash-out.