Investment Loan on Free and Clear property - Posted by Assetproperty

Posted by Mike on December 08, 2009 at 09:47:50:

Nobody (well, nobody reputable) is doing lines of credit for investment properties any more. Balloon loans are out too.

I’m sure there is some fringe lender out there that might be doing it but they’ll probably hit you up for as much as the closing costs of a traditional loan anyway and charge you higher rates.

Depending on what area in the country you live and how long you’ve owned your properties, you might have trouble refinancing at all since you will be doing a cash out.

I’ll say this, whatever rate you get on a conventional refi will more than make up for the closing costs when you compare it to the rate on 52k in credit card debt. Ouch.

Nice job on the properties though. It must be nice owning 2 properties free and clear. :slight_smile:

Investment Loan on Free and Clear property - Posted by Assetproperty

Posted by Assetproperty on December 07, 2009 at 23:10:45:

I own 7 rental properties.

2 of those, I own free and clear.

The rental properties bring in $4,500 a month. I earn $52,000/year in my job. with a 750 credit score

I have about $52,000 on credit cards and a home equity loan against a lake property.

One of the houses I own free and clear is worth $75,000

I would like to get loan against this property.

A few years ago, I was able to get a fixed rate equity loan (with 30 year amort. payments) from Wells Fargo on another property I owned with a 7% interest rate wiht NO closing costs.

I can not seem to find this type of loan now.

Since I really do not know how long I plan to keep my rental properties I really do not want to spent $3,000 in closing costs to get a 1st mortgage on a property I already own.

Are there any fixed rate equity loans available now days for investment properties which you own free and clear?

with no or very low closing costs and a low fixed rate?

Please advise, I would like to get a loan ASAP to get move the debt from the credit cards and equity loan to the home.