All Forum Posts by: Mike Gammarino

In this scenario, would it ever make sense to use a hard money lender?

I also run my own business now, so I'm self-employed.  Perhaps a non-traditional lender like Sprout Mortgage would be a better choice?

Thanks, Jeff and Matthew. I really appreciate the insight. Sounds like I should definitely refi to lock in a lower rate. If I cash out some $$, I'll use it for a new investment property.

Mike

My situation:

* bought a SFH for $250k as my primary in Portland, OR in 2002
* moved to LA in 2006 and turned it into a rental (the home is still in my name, not an LLC)
* been renting in LA since my move
* want to purchase a primary residence

The plan:

* refi my rental (I'm on an adjustable @ 5% right now)
* cash out $150k @ 4% for 30 years (home is worth $550 now)
* use part or all of the $150k for a down payment on a primary residence in CA or NV
* secure a 30 year fixed rate mortgage on the new home
* get back into a home of my own

Any issues with using a cash-out refi on an investment property for a down payment on a primary residence?

Could/Should I use the same lender for both loans?  Should I let the refi lender know my plan for the cash-out $$?

Should I be looking for a specific type of lender for this situation? (my current mortgage is with Wells Fargo)

Mike