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Updated about 2 years ago on . Most recent reply
Refinance/HELOC on a Seller Finance Deal
I just finished reading this incredible book on creative investing strategies, and left me with a lot of productive questions.
One being the following – When you seller finance a deal, how do the HELOC and refinance processes work? Would definitely appreciate any clarification I could get on this.
Thanks!
Most Popular Reply
Quote from @Jeff Copeland:
Essentially, yes. There is nothing particularly "investor friendly" about a refinance. It's one of the most common loan products offered by banks and mortgage brokers. Just shop around for the best rates/terms and customer service.
Closing costs of a refinance may include:
--Origination costs (to the lender)
--Fees for title work and closing the loan (to the title company)
--Recording fees and taxes on the mortgage (to the state)
--Prepaids/Impounds for taxes and insurance (to your escrow account) - Not really a "cost" at the time, but will still be part of the overall settlement.
--Costs for services such as the appraisal, lien search, etc. (to the service provider, or may be settled at closing)
Closing costs of a refinance may include:
--Origination costs (to the lender)
--Fees for title work and closing the loan (to the title company)
--Recording fees and taxes on the mortgage (to the state)
--Prepaids/Impounds for taxes and insurance (to your escrow account) - Not really a "cost" at the time, but will still be part of the overall settlement.
--Costs for services such as the appraisal, lien search, etc. (to the service provider, or may be settled at closing)
Thanks again! Great in-depth article by the way.