Cash out Refinance in Pennsylvania HELP!!! :)

[Sara Finley]

Hello - I currently own two, three bedroom row-home rental properties (closing on a 3rd in May) which were purchased with a private loan from my father-in-law.

I would like to do a cash-out-refinance on the first two properties both with remaining balances of $40,000 .  Our current interest rate with my father in law is 3.75 - which is fine, but I would like to use the equity in the properties to purchase more properties, without having to borrow from him again. Original loans were for 10 years - I would also like to extend the length of the loan to lower payments.  I am new to this - so I do not want to get in over my head or make a big mistake.

I appreciate any and all advice and thanks for reading this ridiculously long post. :)

Long story short - I received a quote from our bank (PSECU) of the following for 15 years:

My current payments are around $600 with a few years into a 10 year loan.

3.125%	4.341%	5.750%	$6,553.73	$417.97	View
3.250%	4.311%	4.750%	$5,953.73	$421.60	View
3.375%	4.282%	3.750%	$5,353.73	$425.26	View
3.500%	4.254%	2.750%	$4,753.73	$428.93

The final calculations are an estimate based on the 3.5% interest rate above:

• Mortgages to be Paid in Full $40,000.00
• PSECU's origination charge $2,450.00
• Required services we select $421.88
• Required services you select $1,407.85
• Government recording charges $474.00
• Fees paid in advance $172.60
• Your new loan amount ($60,000.00)

Estimated Cash to Be Received at Closing $15,073.67 (times 2 for the other property)

My question is - should i just hold on to the original loan - I have 7 years left on one property and 8 on the other, or is this a good deal to get cash for another property?  I have no idea what normal rates are - but I really like PSCU as a bank in general. I just don't want to make a mistake and pay too much. 

I have a hard time finding any other quotes w/out having to give my credit information and getting dings on my credit - OR - getting hounded with phone calls 24/7. My husband is also leery b/c I have been doing all the reading and researching so I have to be able justify it to him as my business partner as well. 

Thanks for reading and I really appreciate it!

Sara and Drew