Standard Terms When Refinancing?
If you want to refinance a rental property, is there a maximum amount of the appraisal value the lender will lend up to? For example, only up to 80% of the appraised value? Or are there a variety of programs available? Anyone had any experience with this?
There are many things involved....First of all...your credit plays a huge part, secondly the lender may place guidelines on the LTV.
Most Lenders won't allow over 90% LTV, and there are huge hits up to 2.5 points from 60%-90% LTV that will effect the interest rate you will get.
The lower the LTV on an IP the better the rate.
Consult your lender for exact numbers, these are just generalizations.
I'm no broker but I sought out the same thing. On an non-owner occupant, they normally lend up to 80%. On a owner occupant, they will sometimes go as high as 125% if you catch them on a good day.
Notice I said normally and sometimes.
any luck getting a 1st for 80% and a 2nd for the remaining 20%? Would this avoid having to pay mortgage insurance?
Quote:
On 2004-03-08 20:56, millionby30 wrote:
any luck getting a 1st for 80% and a 2nd for the remaining 20%? Would this avoid having to pay mortgage insurance?
I would ask a mortgage broker about this--I've seen this type of program at one of the one's I use. Plus, they're good to get to know in case you ever need to get financing for one of your prospective buyers...
andy