Mortgage Blog

A lot of people asked me whether it is ok to cashout
when you have more than 4 financed properties.
The answer is yes.

Let me explain a loan scenario first. I have one borrower
who has more than 10 properties and 9 of them have loans.
So he decided to do the following: 1)Refinanced the three rentals
with 15 yr fixed with lower rates 2)cash-out the primary with the
rate of 5/1 ARM 3.125% for $800k loan, he used the balance
to payoff two existing rentals, and have some extra cash reserve.

Since he does not want to refi any more, he got lower rate
on the primary, fewer rental loans, and some rental loans with
better rates. His cash flow improved a lot.

And we will close this loan today.

Another borrower asked whether she can cash-out on a rental? Then the rate is much higher. It is about 5.625% for 5/1 ARM. So primary home loan cash out refi is better.