All Forum Posts by: Austin Suddreth

Hello everyone!

I'm looking for some insight into my current situation. I purchased a primary residence in early 2019 slightly under market value due to it being outdated. Currently, I have updated the home with new LVP throughout and generally geared my updates towards renting the home out at some point. My main question is: since it's my primary residence and it's homesteaded, do I have to refi if I intend to keep it as a rental? I used a low down payment conventional mortgage at 3% and currently have under 20% equity. I spoke to my lender about getting a refi which would drop my rate from 4.25 to 3.25 and drop my PMI $70 a month without an appraisal due to a waiver (saving me $155 a month roughly). I just wanted to make sure I'm going about this the right way before a go ahead and do this refinance.

Any help or advice is greatly appreciated!!

Hello, I’m in The Colony area and wouldn’t mind connecting with like minded individuals around here as well. 

@Cameron Tope

I agree, that was an awesome response.

Glad to hear someone has used this strategy, I couldn’t find a whole lot of info on it but it seemed to be a reasonable source for some quick funds for the reasons you mentioned. Just curious, did you use the loan to pay a down payment or rehab or possibly both?

@Cameron Tope

I agree, that was an awesome response.

Glad to hear someone has used this strategy, I couldn’t find a whole lot of info on it but it seemed to be a reasonable source for some quick funds for the reasons you mentioned. Just curious, did you use the loan to pay a down payment or rehab or possibly both?

@George Blower

Wow, wasn’t expecting a response with this much info thanks! So just to clarify, since I fall under the participant version, if I take the loan and for some reason end up leaving my employer I’ll have until at least tax return season next year 2021? my biggest concern here is to be stuck with the full amount upon leaving or face withdrawal penalties

Hello all,

I'm looking into purchasing a rental property, more than likely using a BRRRR type strategy where I refinance after repairs are done. However, I was wondering if anyone has experience utilizing a 401k Loan to either fund the loan or down payment? My employee 401k program offers a loan at 6.75% that would be paid back in after tax income from my paycheck. I would likely just utilize this loan as short term financing and pay it back after the refinance so I won't lose much on compound interest in my investment account. If anyone can tell me if this is a ridiculous idea or not I would appreciate the input.

Interesting, I’m not familiar with what wrapping the loan means?

thanks for the replies everyone. I just felt like the fees compared to the mortgage size were out of whack but I guess that comes with the territory. I’ll check out US bank, my credit is over 720 easily so I’m hoping to secure a better rate 

Hi all, I’m looking at getting some advice on financing some $50k SFH homes. I received a quote from one lender offering 5.625 interest rate with 1.375 lender points and 6.446 APR, these are assuming a 15% down payment. As this is my first investment property I’m wondering if these rates are the norm for an investment like this? I also called another lender and they informed me that due to the size of the loan the fees that come with it may be too high and considered illegal. Essentially I’d like to know if these rates are par for the course or if anyone has any better methods of financing small SFHs like these?

Okay, that’s kind of what I was thinking I had read somewhere. That sounded like too restrictive of requirements to me. Might have been a lack of communication but I’ll speak with my lender and get it sorted out. Thanks all!