April 4th, 2013 1:33 PM by Eric Fang
Q: I have two Rental properties. One rental with 140k loan with $230k value, the current rate is 5%; The other propertyloan amount is 288k, value around 600k, current rateis 4.125%. Can I do refi with those properties?
A: For your 140k loan, you can refi with 3.75% for the closingcost of $2400. The break even time is about 2 years. If you hold the property longer, then this is a good option for you.
For the 288k loan, you can get the rate of 3.75% with no closing cost with impound account. This option is better than payingclosing cost to get a little bit better rate, though you can still do it that way.
Just for your info, I just quoted to another borrower with 218kloan for 15 yr fixed with the rate 3.125% for $500 closing cost.This is not bad as well.