I have 6 mortgages I want to refinance (I’ve numbered them for ease of reference). All are investment properties except the first one. I have an LLC, but all properties and mortgages are owned my husband and me personally. We both have excellent credit scores (at least, until the recent pulls). We have no other debt, except revolving credit cards paid off each month. We have investments; we have employment income. All homes are in Virginia. Three re-fi's are already in process (using the deals the banks were sending me); I have another three to go.
Questions: • When do I start the other 3 mortgages? Should I do before the first ones close, or wait until after they close? • Is it true there is a 14-day period during which all credit pulls are considered as “one pull”? • How much negative impact will the recent credit pulls have? Will they cause the new offers to have higher interest rates? • Is there usually an advantage of going through one mortgage broker? Or should I go through banks? How should I choose who to contact? * Should I consider any kind of Home Equity Line, etc. as part of this? * If the world were perfect (ha!), I would love to get $75,000 cash from somewhere for renovating one of my properties. Suggestions? • What else should I be aware of…worry about…avoid…etc.
Many thanks! I know this group has a vault of knowledge and I appreciate anything someone is willing to pass on! (I know there is a lot of information below, but I don’t want you kind folks to have to keep posting questions because I wasn’t clear. I hope it makes it easier for you to respond.)
The three already in process:
Loan 1: New loan (started process 1-15-13): Wells Fargo, $394,000 for 30 yrs @ 3.5%; no closing costs for me (Three-Step HARP—new term); this is my personal home (although it really is several rentals merged together, it is financed as personal home). Current assessment: $510,100. Single family.
Loan 2: New loan (started process 1-11-13): CitiMortgage, $78,000 for 15 yrs @ 3.625%; no closing costs for me (HARP—new term). Current assessment: $147,300. Single Family.
Loan 3: New loan (started process 1-18-13): Bank of America, $147,000 for continuation of existing 30 yr term (till 12/34) @ 4.25%; no closing costs for me (loan modification; had to do paperwork like a re-fi). Current assessment; $127,600. Duplex.
The remaining three I want to refinance:
Loan 4: Current loan: Bank of America, $58,000 for 30 yr (matures 6/34) @ 6.25%. Current assessment: $88,700. Not HARP-qualified. Single family.
Loan 5: Current Loan: CitiMortgage, $57,000 for 30 yrs (matures 9/33) @ 6.5%. Current assessment: $122,200. HARP-qualified; best deal they’ve offered is 4.375% for new 30 yr loan. Thinking I could do better? Single family.
Loan 6: Current loan: CitiMortgage, $72,000 for 15 yrs (matures 6/20) @ 5.875%. Current assessment: $151,000. Not HARP qualified. Duplex.
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Senior Member - 1K
posted: Feb. 8, 2013 @ 10:37p
How can you get a HARP on all of these when they are not primary residence?
posted: Feb. 8, 2013 @ 10:56p
Loan 1 is a primary residence as far as the paperwork goes (my home is paid off, but I refinanced it and then used the cash to finance investment properties). Loan 2--I'm not sure; Citi just started sending me letters saying I was eligible for the HARP program--they know it is investment property (in fact, the lady I spoke with said she had not seen such a great rate as 3.625% on rental property). Loan 3--Not HARP, but BoA just sent me a letter saying they could lower the rate. Loan 5--They sent me a HARP letter as well. In short, I'm not sure how HARP is available, except that those three loans are all FANNIE MAE.
tennis8363 said: How can you get a HARP on all of these when they are not primary residence?
Senior Member - 1K
posted: Feb. 9, 2013 @ 7:39a
I've re-fi'd rentals with HARP before also.
Senior Member - 2K
posted: Feb. 9, 2013 @ 10:41a
Per FreddieMac's website, 1 to 4 unit investment/rental is eligible for HARP.
You may be eligible for HARP through your existing lender or a different participating lender if you:
Own a 1- to 4-unit home as your primary residence, a 1-unit second home, or a 1- to 4-unit investment property.
To one of your other questions, OP, I'm no expert and others on FW will know better, but it's my understanding that the 14 day window for all mortgage related credit pulls counting as 1 pull would apply regardless of whether the inquiries are for the same property or 6 different. I'd try for a refi-orama if I were you.
posted: Feb. 9, 2013 @ 2:00p
I plan to do all within the same 14-day period, so I think I'm heading for a refi-orama!! Any advice on doing one?
dbond79 said: To one of your other questions, OP, I'm no expert and others on FW will know better, but it's my understanding that the 14 day window for all mortgage related credit pulls counting as 1 pull would apply regardless of whether the inquiries are for the same property or 6 different. I'd try for a refi-orama if I were you.
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