All Forum Posts by: Kelly M.

@Michael Jones Thanks Michael. It makes me nervous too. It sounds like only part of it is refundable ($1500) if the loan is not approved. $3500 for underwriting fee seems very high to me as well.

Hi! I’m looking to refinance cash out of my three unit rental property.

I owe 140k and it’s appraised for 280k, so I’m looking to take out around 60k. Positive cash flow of around $1200 per month before refi.

My question is about the terms and “commercial fee agreement”.

1. The commercial lender took preliminary info about my credit score, property, cash flow, value, etc. He said everything looks good and I would likely be approved for a 3.75-4.25 rate with 10-20 year rate lock and 25-30 year amortization. This sounds great! Does it sound too good to be true? Which leads me to the next question:

2. The lender is requiring a $5000 "commercial fee agreement" before moving forward. It's basically a fee for them doing the underwriting. They get most of the fee ($3500) even if they don't provide a LOI or the LOI is not within the terms we discussed (above). So my second question is, is this fee normal? With no guarantee of a loan? I just pay them to tell me yes or no?

This lender was referred by my residential mortgage broker (who is also a friend). He says he’s never used them before, but thinks they are legitimate.

I also paid a fee with my previous commercial refi, I just don’t remember it being non refundable even if they can’t provide a loan.

Just looking for feedback on both questions above.

Thanks!

@Tim Addai Venmo

@Michael Bettencourt I was just quoted 5.6% on a two residential unit cash out refi. Credit score 780ish.

I can’t make it either, but would be interested in something in MD if it doesn’t already exist. 

I thought the rate was low as well (for hard money).  My current rate is 5.6% 5 year balloon/20 year amortization on a commercial loan.  This is through a small community bank and I was happy to get it.  I'm currently looking to refinance into an investment residential loan and I was just quoted 5.7% for 30 year loan. And I'm jumping/jumped through hoops for both.

Good luck!

@Nicole Frawley thank you. Then maybe 70% is too conservative, and 75% is realistic.

Thanks again

@Shaun Ashkenazy thank you. Is that true if I’m trying to get a residential loan not commercial. I want a 30 year. My lender said I can get residential because the retail space falls below a certain percentage.

@Rachele Roberts Wow! 80% would be great. Do you think that is common? I’ve never done a cash out refi.

Hi Everyone!

I'm finally almost done renovations on my three unit property and I have leases on all units. I want to do a cash out refi. My lender says they can do up to 70% LTV. I was just wondering how common 75% is and if I should go through the trouble of looking for a needle in a haystack...or 75% LTV is common?

It’s zones historic commercial. Two residential units, one commercial. Loan balance is $140k. Appraisal estimate likely $325k-$400k. Comps are extremely difficult in this area. Units are so different.

Anyway, just the LTV is my question. What's the most common %

Thanks!