I have a loan from a family Member, wondering about a Refinance?

[Kenneth Morff]

My Wife and I have 2 Properties, and to get the second property we talked to family about helping with the down payment, in return we are giving them 15% interest on there investment. The thing is we are looking to Cash-out refinance one of the properties to purchase the 3rd Property. We pay 2 separate family members 2 separate payments of about $950 and about $450. We were wondering about the Refi, and how we would explain to the Lender why $1400 Mysteriously comes out of our account every Month. Do we have to tell them its a loan? and what is the best way to go about this?