There is absolutely no difficulty in getting a loan if you qualify, and it only takes a couple of weeks if your situation is clean
There is no single mortgage rate that applies to everyone.
There’s a difference between a refinance with no cash out and taking cash out.
Having a HELOC or other 2nd can mean that you wont get the best pricing, even if you have a zero balance.
There is a lien against the property for the full amount of the line.
Paying off a HELOC balance when you refinance is cash out pricing unless the HELOC was used to purchase the property.
No cost loans for rental properties are not low, but if you understand that you are going to pay one way or the other, you can buy the rate down and save a lot in the long run.
Loan underwriting guidelines are idiotic. There are people with 800 credit scores who cannot qualify for a 50% loan yet others with a 680 score and 3% down payment will qualify.
Covid19 has created some temporary guidelines that can make qualifying extremely difficult for self employed borrowers.
Anyone who has had their income cut or on furlough may have difficulty.
Unemployed without other income don’t qualify at all, regardless of equity, credit score, net worth or size of their ego.
For those who do qualify, rates have never been better.
No cost loans are available, but you’ll never get the lowest rate.
Many people are fooled thinking they have no cost, but they really are paying fees.
For salaried W2 wage earners with good credit and stable income, loans can be closed & funded in 2-3 weeks.
HELOCS & Solar liens can complicate refinancing.
Having rental property can complicate refinancing.
30yr rates are available at 3.00% or less. The higher your loan amount the easier it is to get a true no cost loan.
Saving just .25% can mean a savings of $30,000-$40,000 over the life of a loan. Depending on your balance.
Most people are paying way too much in interest. Many don’t qualify to refinance but those that do qualify will waste a ridiculous amount of money over the life of their loan, without realizing what they are doing.
The key is not starting over at 30 years with the lowest payment. The amazing savings is making the same payment that you are making now at a lower interest rate. Possibly at zero cost.
The difference between 4.00% and 3.00% on a $400,000 loan is $120,000 of wasted interest
On a $500,000 loan the difference between 3.50% and 3.00% is $76,000 of wasted interest.
If you want a free analysis and explanation, just send me a message.
Some people are refinancing their primary residence and paying off much higher rate rental properties. There are various strategies to save a lot in interest.
I’m still seeing lots of people still at 4.00% or higher
If you currently have a VA loan, refinancing is very easy and rates are AMAZING. Free advice.
Have helped lots of Piggington posters & lurkers 🙂 HLS
