Refinance on multiple properties? Please Help! (loan officer, interest rate, 2015, real estate)

[Atlantasfinest]

I have a rental property that has a 1st & 2nd loan (7 year fixed) that were the interest rate will be adjusting in 6 years. I have another rental property were I have a mtg loan(1st) and a line of credit that acts as the 2nd loan the mtg rate will adjust 4 years from August 2008. I purchase these homes originally as primary and 2nd home properties.

I'm able to cover my rent payments with the rent I'm charging now and I'm comfortable with the Mortgage Rate since I'm making the payments easily.

My question is when should I refinance before the rates start adjusting and in conjunction with the expiration of my rates?

I want to make sure to capitalize on the best rate possible but I do not wan't to wait right before it adjusts to try and refinance. Also I would like to re-finance to a more long-term loan (20-30 years). Each property has about 10-15K in equity from the current sales price they are selling the units at and is in a highly desirable area in Atlanta were the building is 85% sold and they are in the top 3 of sales for condos (www.studioplexlofts.net (broken link)).

I have two other rental properties; One is a 10-year interest only that has 8 years in October until it adjusts and another 30-year fixed that has 28 years in December until it adjusts. I also have a primary home here in Atlanta that I just bought that is on a 30-year fixed loan. Will having these other properties make it hard for me to be able to refinance?

I have perfect credit (800's) and I have never been late on any payments and have a 90K salary per year with the companuy I've been with for 7 years.
Any advice you kind fellows from City-Data could give me would be much appreciated. Thanks alot!

[Atlantasfinest]

Are their any Mortgage Professionals or insiders who could help me with this question?

[chet everett]

You are asking a lot of questions here. Not that it is wrong to do that, I often do the same thing to my mortgage guys. Basically you are going to need to do what I do with the answers I get from them.

FIRST make sure that the lender KNOWS these are NOT owner occupied properties are they are aware of your cash flow. With out that info UPFRONT you and they can clash/have some nasty surprises.

SECOND get all the COSTS detailed for EACH option. Put all that info into a nice spreadsheet so you can see what happens now, a year out, two, three, five -- however long you want to project.

THIRD don't confuse yourself or your lender with stuff that makes no sense -- how the heck can you be two years into a 30 year fixed that adjusts in December??? How many total properties are you carrying? How many are ACCURATELY financed as income properties? What is the deal with your primary residence? If you have no desire to change the financing on it don't even mention that. You are investor / speculator and that is quite different than being a regular homeowner.

OK, all that said, I gotta think that unless you have some real good relationship with a nice mid-sized business oriented bank you are NOT going to like the rates that you get back. I might make a lot more sense to reevaluate the whole shmear of rental properties in terms of "worst case" rates that reset to the maximum terms. You NEED to also know whether the interest only and balloon have any reset option. You MUST have that info. If the current lenders have been in contact with you and offered to change the terms at all my guess is that it will be worth negotiating with them directly as you seem to be handling things pretty well and they LIKE to have their loans performing...

[chuck-a-muck]

Where do you live now? Are you renting? Do you own a primary residence? It sounds like all your properties are being rented right now. If this is the case, you might consider setting up an LLC to get these mortgage debts off your credit report and permit the further growth of your 'empire.' A real estate lawyer can assist you, and some banks will help set you up themselves. The title company you last worked with might offer some free advice, too.

Most lenders allow from 4-6 properties per borrower. Some portfolio lenders who hold the asset they buy when you contract will allow 'unlimited' properties. Also, STATED income and asset application is still available.

In answer to your question regarding 'when', your loan officer with whom you entrust your portfolio should be advising you -- although I do not have a crystal ball on the future of the variable rates, I do monitor the industry in which I work. Also, I can advise that you routinely (every two years) order appraisals on your properties to be certain of your LTV status -- knowledge is all, my friend, especially if you consider your long-term strategy.

Finally, invest some time searching out a broker with whom you can connect and trust, who has many lenders at his disposal. Brokers still in business have weathered the current storm, and they have their finger-on-the-pulse right now -- out of necessity. They know who is still in business, who permits the most leeway in underwriting if neccesary, and who will likely be around next year.

[Atlantasfinest]

Originally Posted by Atlantasfinest

I have a rental property that has a 1st & 2nd loan (7 year fixed) that were the interest rate will be adjusting in 6 years. I have another rental property were I have a mtg loan(1st) and a line of credit that acts as the 2nd loan the mtg rate will adjust 4 years from August 2008. I purchase these homes originally as primary and 2nd home properties.

I'm able to cover my rent payments with the rent I'm charging now and I'm comfortable with the Mortgage Rate since I'm making the payments easily.

My question is when should I refinance before the rates start adjusting and in conjunction with the expiration of my rates?

I want to make sure to capitalize on the best rate possible but I do not wan't to wait right before it adjusts to try and refinance. Also I would like to re-finance to a more long-term loan (20-30 years). Each property has about 10-15K in equity from the current sales price they are selling the units at and is in a highly desirable area in Atlanta were the building is 85% sold and they are in the top 3 of sales for condos (www.studioplexlofts.net).

I have two other rental properties; One is a 10-year interest only that has 8 years in October until it adjusts and another 30-year fixed that has 28 years in December until it adjusts. I also have a primary home here in Atlanta that I just bought that is on a 30-year fixed loan. Will having these other properties make it hard for me to be able to refinance?

I have perfect credit (800's) and I have never been late on any payments and have a 90K salary per year with the companuy I've been with for 7 years.
Any advice you kind fellows from City-Data could give me would be much appreciated. Thanks alot!

Let me clarify that...

I have two other rental properties; One is a 10-year interest only that has 8 years until it adjusts (October 2015) and another 30-year fixed that I've had for two years in November 2008. I also have a primary home here in Atlanta that I just bought that is on a 30-year fixed loan.

So mainly it's the two rental properties that I mentioned above that I'm concerned about in 4 and 6 years that I want to have longer/stable terms for their mortgages.

[Atlantasfinest]

[quote=chuck-a-muck;4162238]Where do you live now? All these properties are in Atlanta and I live in Atlanta. Are you renting? I'm not renting. Do you own a primary residence? I own my primary residence. It sounds like all your properties are being rented right now? Your correct, I have 4 properties being rented now and own the primary residence I live in.

How do the above scenarios play a part in me getting refinanced?

If this is the case, you might consider setting up an LLC to get these mortgage debts off your credit report and permit the further growth of your 'empire.' A real estate lawyer can assist you, and some banks will help set you up themselves. The title company you last worked with might offer some free advice, too.

---I will definately look into this so I won't be directly liable should something happen. Thanks for the great information I will look into all of those options you gave me.

[chuck-a-muck]

Well, your current rates are probably under 6-percent, so stay there. I'd suggest paying extra principal on both mortgages, if possible -- and, hold them until reset. If rates do go up, as I assume you're afraid of, they'll come back down before crunch time. And, your LTV at time of refinance will be considerably lower, assuming increased value and lower principal amount.

[Atlantasfinest]

[quote=chet everett;4162000]You are asking a lot of questions here. Not that it is wrong to do that, I often do the same thing to my mortgage guys. Basically you are going to need to do what I do with the answers I get from them.

FIRST make sure that the lender KNOWS these are NOT owner occupied properties are they are aware of your cash flow. With out that info UPFRONT you and they can clash/have some nasty surprises.



SECOND get all the COSTS detailed for EACH option. Put all that info into a nice spreadsheet so you can see what happens now, a year out, two, three, five -- however long you want to project.

THIRD don't confuse yourself or your lender with stuff that makes no sense -- how the heck can you be two years into a 30 year fixed that adjusts in December??? Sorry about the confusion...I addressed it above.

How many total properties are you carrying? 5

How many are ACCURATELY financed as income properties? What do you mean by accurately financed?

What is the deal with your primary residence? It's a 30 year fixed 6.125 int rate so I'm not looking to refinance any time soon.

--I might make a lot more sense to reevaluate the whole shmear of rental properties in terms of "worst case" rates that reset to the maximum terms.

How would I go about re-evaluating? The lofts are live/work lofts and highly desirable and are 100% occupied (85% sold) it's about 125 units in a great area here and my LTV is great because I was among the 1st buyers. SO hopefully I should be able to refi unless my other rental properties come into play.

Thanks for the info and look forward to hearing from you!

[Atlantasfinest]

Originally Posted by chuck-a-muck

Well, your current rates are probably under 6-percent, so stay there. I'd suggest paying extra principal on both mortgages, if possible -- and, hold them until reset. If rates do go up, as I assume you're afraid of, they'll come back down before crunch time. And, your LTV at time of refinance will be considerably lower, assuming increased value and lower principal amount.

At the time of reset do mortgage companies (In my case Suntrust & Wells Fargo on the 1st & 2nd Loan for each property) offer some type of refinance package before the reset to keep things streamlined and to continue the loan?

[chuck-a-muck]

If the loans were originated in-house, and not through a broker, I'd guess not. You'd want to mark it on your Outlook calendar, my friend -- it's your money.

If a broker set you up, he/she should have the re-set dates in his/her Outlook calendar in order to take care of you and MAKE MORE MONEY.

Brokers count on repeat business, where banks often re-contact you with just another telemarketer at $2.00/hr over minimum wage.

Lenders cannot 'continue the loan.' They can write a new contract on the same property; any lender can write a new contract on your property with your signature.