Loan surcharges… Anyone else want to confirm?

[Coronita]

So speaking of loans, I was speaking to my loan broker friend tonight briefly about the possibility of lining up additional loans or refinancing again (don’t ask why). Here were some things that went briefly across, that I didn’t have time to write down… Anyone else confirm?

1. Refinancing from a conforming to a conforming+ loan: additional 1 pt (I knew this)

2. Investment loan: 1.75 pt additional surcharge… (Ouch…)

3. Loans less than 150k< .25 pt surcharge (too much paperwork for small loans) 4. Buying property with investment loan first versus paying cash first and the refinancing out... Doesn't really matter in terms of rates, BUT if one goes first buys with cash and refinances second (assuming the property can qualify for financing), maximum refi is no more than 60% LTV. Friend end suggestion was to either 1. refinance primary and cash out as this was the cheapest option with a fixed rate. 2. assuming there was cash on the side to cover the complete purchase, take out a HELOC, as these are still really cheap, and the moment rates rise, pay off. 3. Borrow from fixed in relatives and give them a a above market return above a CD but a below market mortgage rate. Yeah right, knowing my relatives they'd try to get away with usury :)...

[bake]

These are all standard pricing hits flu. What exactly are you trying to do?

[an]

All of those sounds about right. I’d refi cash out to 80% ltv 30 years fixed and use the extra cash to buy the investment property.

[all]

[quote=AN]All of those sounds about right. I’d refi cash out to 80% ltv 30 years fixed and use the extra cash to buy the investment property.[/quote]

Cash out would put him in conforming+ category and cost him 1pt of the total balance, not just the cash out part.

[Coronita]

[quote=AN]All of those sounds about right. I’d refi cash out to 80% ltv 30 years fixed and use the extra cash to buy the investment property.[/quote]

how did you manage to cash out to 80%?

[an]

[quote=flu][quote=AN]All of those sounds about right. I’d refi cash out to 80% ltv 30 years fixed and use the extra cash to buy the investment property.[/quote]

how did you manage to cash out to 80%?[/quote]
Captcha, good catch. I didn’t notice the conforming+ part.
flu, my bad, there’s no 80% LTV for conforming+ AFAIK.

If you really want to, you can always do a like kind trade. I.e. buy a house just like yours with 90% LTV (SDCCU have these), and sell yours. You’ll lose out on the RE commissions but you can extract 90% of your value. Another option is to get a RE license for ~$5k (rough estimate) and buy/sell yourself. That’ll save you a lot on the commissions.

[sdrealtor]

Just what he needs…another job. Dont you remember what FLU stands for 😉

[beachlover]

Similar to my recent refinance. Got a 2.875% 10 year loan. Was amazed at the amount of paperwork necessary; plus re-sending items that got “lost”, took over 8 weeks.

[Author]

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