All Forum Posts by: Jared L Getz

@Shaun Weekes.

Thanks for the clarification.  I'm starting to get my head on straight as to how I'm going to approach everything.  

@Shaun Weekes,

Thanks for your help. I have been specifying that I need the conventional loan refinance because I need to be FHA eligible for my up coming property purchase. If you don't mind I do have a couple questions about your reply.

For starters, I take it you are saying that a conventional refinance does not need to be appraised? If not, can you elaborate on why and tell me how they verify the home's value? I used zillow to get a rough idea on my property, I'm sure most loan officers use similar software or websites?

Also, could you just take a minute to expand on "rate and term" and the "limited cash out" you mentioned?

And because I won't be able to cash out (much, anyway),  if anyone has any thoughts on my chances of getting a home equity loan shortly after this refinance I would love to hear it as well.

Thanks. 

Well, I got some bummer news today that I just wanted to confirm with some experienced investors . The maximum cash out refinance LTV on a duplex is only 70%?? I do not reside at the property, it is completely a rental property with 2 units.

I'm expecting to be ready to purchase another multifamily property within the next 6 months, and I was planning (thanks to this forum) to cash out refi and use that money toward the down payment of that new mortgage. Because I have a conventional loan on my duplex, and I will be living in my next property, I will be eligible for the FHA at 3.5% downpayment.

My home value is 100,000

My mortgage balance is 72,500

I was contacted by a loan officer recently who had informed me that max LTV on my rental was 80%, however today another company told me it was only 70%, and I did find an article online stating that was the case.

Obviously 70% of 100,000 is only 70,000.  If my balance is 72,000 then obviously there isn't anything left to cash out.  Am I only going to be eligible for a conventional refinance? Should I keep my mouth shut and see what happens with the lender that stated 80%??????

My current interest rate is a ridiculous 8.125%, so I plan to refinance no matter what. If I am unable to cashout with this refinance, does anyone know if I would be able to get a HELOC or even just a home equity loan somewhere within a few months of a conventional refinance??

Or is there another route I should try and pursue in order to tap into the equity that I do have? Any thoughts, comments, or suggestions would be appreciated.  Thanks in advance!!

@Chris Mason,  Yeah I forgot all about loan estimates.  It's been 8 and 1/2 years since I've been down this road.  I'll start making some calls and see what's what.  I'm really grateful for finding BP. Not to be all sappy about it, but you guys are amazing.  I can't tell you how much all this helps.  Thank you.

@Chris Mason, that's good information and does give me something to keep in mind when I shop some closing cost estimates.  Unfortunately for them, I doubt that they were considering my escrow account at all.  They actually said fees would be around 3,000 and if I were to continue with the application process there would likely be another 500-1000 added to that.  Now that you mentioned my escrow, it would be safe to say that would be at least part of what the "additional" costs would come from. 

It anyone is interested, the link below is to an article really breaks down the closing costs...

http://homeguides.sfgate.com/average-closing-cost-...

Here is a quick run down of price ranges in general...

appraisal fee.....225-400

loan origination fee.....75-300 (or 1% of loan amount)

credit report.....15-30

title search and title insurance.......450-600

legal fees.....75-200

survey (although less likely to occur).......125-300.

Adding up all the "maximum" estimates comes to 1,880.  I think I'm going to ask lenders to break down their fees for me just for comparison. 

Many thanks for the input Matt.  I had a feeling I was getting scammed on that one.  I've been looking into this a lot online, and filling out some generic forms, and as a result a random lender that I won't mention by name contacted me....not the other way around.

And to answer your question....No.  I have had this property for 8 years now. 

Thanks again, and any specific closing costs and with which lender or bank from anyone else is still appreciated. Particularly if the refinance was within the last 12 months.

Hello,

I'm curious what closing costs and fees were tied into all of your recent cash out rental property refinances....and with what bank/lender you refinanced with?

I am planning a cash-out refinance on my rental property to fund the down payment of an FHA loan for a multi-family home that I plan to reside in for a year while renovating. Considering my current APR is a ridiculous 8.125% this refi will be very beneficial!!!

Anyway, I spoke with a loan officer today and this was the estimated break down...

100,000 Home Estimate

80,000 Maximum Loan (80% LTV on rentals)

68,000 Current Mortgage Balance

3,500 Closing Costs

8,500 Remaining for my Cash Out.

I was hoping to be able to walk away from my refi with 10k in my pocket, but unless I can find a bank or lender with lower closing costs, I don't see that happening.

Please list your bank or lender, and the total in closing costs that were applied to the refinance.

Many thanks!!

Excellent info. Thank you very much.

@Patrick Liska, here is a link to the questions I posted. Thanks!

https://www.biggerpockets.com/forums/49/topics/333003-funding-for-a-second-property-questions-from-a-noobie

Hello Forum, 

I cannot believe I never thought to look for help in a real estate investing forum!  I have a duplex which I financed in 2007. I presume the property was considered a primary residence because they were aware I was going to be living in one side.  Now, almost 9 years later, it is exclusively a rental property...and both units are "always" rented out.

I now reside in our family home and am anxious to get a mortgage on another property between 2 and 4 units.  I plan to live in one unit as I renovate.

I have scoured the internet but have never found much information on what my options for financing are, and a couple phone calls I made to local banks did not do much good, as my goal of purchasing a property is very hypothetical because I will not be ready for another 6 months or so.  Any and all suggestions and advice are appreciated!!

Here are some details.

My duplex was purchased at 80,000.  I currently owe 68,000.  The value of the home is estimated at 110,000.

Now, I was able to put only 5% down on this property back in 2007.

So here are my questions....

1.  I'd love to get away with a 5% or less down payment.  Is that possible considering that I am going to be residing within the property?  Will my first rental property be a problem? 

2.  Could I use my rental property equity as collateral toward a down payment....or maybe take out a home equity loan to use as a down payment?  I do understand that a home equity loan would increase my debt to income ratio, but I'm curious.

Those are the big ones. Any advice, thoughts, or recommended resources would be most helpful!!