Bank Financing of 5 and 6 family investments in NJ

[Jo Cole]

Hi, I currently own a 6 unit building that has a mortgage of about $200K.  I believe the building is worth $800K so I'd like to refinance and cash out another $300K to fund another investment (approximately $500K mortgage to replace my existing $200K mortgage).  I'm looking for a 20 or 30 year fixed rate mortgage.  Can anyone recommend commercial banks in NJ that can offer rates?  I'm looking to do this asap.  

[Tim Milazzo]

Hi Jo,

 While possible, finding fixed rates for that long of a period is rare. I think I'll be one step more bullish than Upen and that it's not uncommon for us to see a 10-year fixed rate with competitive terms if the property is stabilized and you have a good track record. The shorter the fixed period, the lower your rate will typically be though.

 At half a million, your loan will still be best placed with the region's banks and credit unions. Is the property in Bayonne? If so, there are definitely plenty of banks East of the Hudson that would be interested as well.

 - Tim