hunting for a IO loan at 65% LTV at a decent rate.

hunting for a IO loan at 65% LTV at a decent rate.

Investor From Portland, OR · Member since 2017 · 87 posts · 26 votes

Hey there, just curious if anyone is seeing any decent private money rates for investments properties. I have a place I'm looking to refi out at 65% and hoping to find a IO in and around 5% if possible. 

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Lender · Hackensack, NJ · Member since 2016 · 1k+ posts · 372 votes
3y
As of 10/19/2022 I can say with a fair amount of confidence a 5% interest only loan on a refi of an investment property isn't happening. (unless you have an uncle willing to cut a check)
You might be able to get into the mid 6% range on a 30 year but that would probably be the lowest rate that you will find.
Best of luck tho, hope you are able to land something favorable for your situation
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  • Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    3y

    I've had a lot of conversations with various lenders over the past couple weeks. I've been looking for some better terms on some of my development debt.

    I don't think you're going to find a fully amortized loan on a cash-out-refi at 7%, let alone an interest-only loan at 5%.

    Not a great time to borrow money... and looks like it's going to get worse before it gets better.

  • Lender · Hackensack, NJ · Member since 2016 · 1k+ posts · 372 votes
    3y
    As of 10/19/2022 I can say with a fair amount of confidence a 5% interest only loan on a refi of an investment property isn't happening. (unless you have an uncle willing to cut a check)
    You might be able to get into the mid 6% range on a 30 year but that would probably be the lowest rate that you will find.
    Best of luck tho, hope you are able to land something favorable for your situation
  • Scott WolfPro Member
    Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 956 votes
    3y
    Quote from @Steven Denio:

    Hey there, just curious if anyone is seeing any decent private money rates for investments properties. I have a place I'm looking to refi out at 65% and hoping to find a IO in and around 5% if possible. 


     What is the property type, current value, and term you're seeking?

  • Member since 2022 · 1 post · 0 votes
    3y
    Quote from @Scott Wolf:
    Quote from @Steven Denio:

    Hey there, just curious if anyone is seeing any decent private money rates for investments properties. I have a place I'm looking to refi out at 65% and hoping to find a IO in and around 5% if possible. 


     What is the property type, current value, and term you're seeking?


     Sfr-$950k. 3-5year cash out refi

  • Lender · Austin Texas · Member since 2022 · 319 posts · 156 votes
    3y
    Quote from @Steven Denio:
    Quote from @Scott Wolf:
    Quote from @Steven Denio:

    Hey there, just curious if anyone is seeing any decent private money rates for investments properties. I have a place I'm looking to refi out at 65% and hoping to find a IO in and around 5% if possible. 


     What is the property type, current value, and term you're seeking?


     Sfr-$950k. 3-5year cash out refi

    what does this rent for, market or in place rent, not str…….

    It’s possible you could bridge it but bridge lenders are not favorable to cash out right now. 

  • Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Steven Denio- more than likely there  are no  long term IO options for INV property ....if  you  find one - the rate  will be north of  7%  and likely  short term ( 1-2 yrs )

  • Investor From Portland, OR · Member since 2017 · 87 posts · 26 votes
    3y

    @scott 

    @Scott Wolf - a 2 to 5 year product on a SFR residential home. Current comps are around 950K. I'm looking to cash out refi at 65% LTV

  • Lender · Meridian, ID · Member since 2020 · 18 posts · 17 votes
    3y
    Quote from @Steven Denio:

    Hey there, just curious if anyone is seeing any decent private money rates for investments properties. I have a place I'm looking to refi out at 65% and hoping to find a IO in and around 5% if possible. 


     hi Steven! We have an IO loan for investment at 70%. Rates are not in the 5's but the way this loan operates peoples effective rate that qualify are significantly better than even rates 8 months ago! its called the ALL IN ONE and it is works like nothing else out there. 

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