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Why he does the refinance all the time?
November 20th, 2014 9:26 AM
At this moment, my client A just signed his refinance documents for his
two rental properties. One from 30 yr fixed 4.5% to 4.25%; another from
4.625% to 4.125%, both with no closing cost.

My client has a dream for 10 or more properties, and he will reach the goal soon since
he already has 9 now. In order to be able to qualify more and more properties,
even a little bit savings from those properties could help qualifying for more
mortgages. We did a few refinances for 7/1 ARM 3.375% or 5/1 ARM 3.25%.
Though it might not be the best, but the rate is already very good for a rental.
And if we can save around $50 on each rental properties, 8 of them will be $400.
And the $400 savings will help improve a little bit on DTI.

We did not talk about the goals after 10 properties. I know some borrowers will go
commercial, or change some SFR to multiple units. But if he plans to acquire more
properties, then he should think about how to get more loans now. Any way, Fannie Mae
only allows 10 financed properties.

Posted in:General
Posted by Eric Fang on November 20th, 2014 9:26 AMPost a Comment

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