Cash out refinance loans can be the perfect option for real estate investors looking to take equity from an existing property in order to reinvest the funds elsewhere. Hard money refinancing is the quick and easy way for real estate investors to raise funds and then acquire a new investment property when an opportunity arises.
Cash Out Refinance on Investment Property & Rental Property
Many real estate investors find themselves sitting on large amounts of equity in their investment and rental properties after many years of a hot real estate market. Some real estate investors will feel the urge to tap the equity in their investment properties and invest the money elsewhere.
A cash out refinance on investment property is a common way for real estate investors to pull equity from an existing property. Real estate investors refinance investment property and rental property for various reasons including pulling out equity to invest in a new opportunity, refinancing to a lower interest rate or paying off an existing loan that will soon become due. Hard money refinance loans are available for various investment property types including residential rental property and commercial property.
The investment property being used as the collateral for the hard money refinance loan could be encumbered with a conventional mortgage, a hard money loan or be free and clear (no loans or liens). Regardless of the situation, North Coast Financial is able to provide a borrower with a cash out refinance on their investment property.
The process for a cash out refinance on investment property is quick and easy. North Coast Financial just needs a loan application to provide the real estate investor with a loan approval. It then takes as few as 3-5 days for North Coast Financial to fund the cash out refinance on the investment property. Cash out refinance loans on owner occupied property takes at least 2.5 weeks due to the current federal regulations that all lenders must follow.
Refinance a Hard Money Loan
Borrowers refinance hard money loans for various reasons. The most common reasons include refinancing to a lower interest and refinancing a hard money loan that will soon be due.
Hard money loans are typically for short-term use only and terms of 1-3 years are most common. If a borrower isn’t able to refinance a hard money loan to a longer term conventional loan, they may need to refinance the existing hard money loan with a hard money loan from a new lender. The borrower may be able to ask their existing hard money lender for an extension on the loan but lenders aren’t always able to grant them for various reasons.
Borrowers may also decide to refinance hard money loans if their property has recently appreciated and they wish pull additional equity from the property.
Refinance and Reinvest with Hard Money Loans
North Coast Financial is able to provide real estate investors with a cash out refinance loan to pull out equity from an existing investment property in order to raise funds for a down payment. After the cash out refinance, NCF can then also provide a hard money purchase loan to the same borrower to help them acquire the new investment property. North Coast Financial has the ability and resources to quickly fund multiple loan requests and enable the real estate investor to accomplish their investment goals.
A hard money refinance on investment property is a straightforward process that requires a simple application for initial approval.
Cash Out & Hard Money Refinance Timelines
A hard money cash out refinance loan on an investment property can be approved and funded in as few as 3-5 days if needed.
North Coast Financial is able to provide a cash out refinance on an owner occupied property but the funding process takes longer (approximately 2.5 weeks) due to current federal regulations that all lenders must follow.
Cash Out & Hard Money Refinance Interest Rates
Hard money refinance interest rates are generally consistent with interest rates of other hard money loans, depending on the specifics of the loan scenario. Cash out refinance rates from hard money lenders are higher than rates from conventional lenders such as banks or credit unions since the perceived risk is higher.
Although, the interest rates are higher, the convenience, speed of approval and funding and increase in likelihood of loan approval are worth the added financing cost for many real estate investors.
Refinance Reverse Mortgage Loans for Heirs
North Coast Financial is able to provide funding to refinance reverse mortgages for heirs, in situations where an heir(s) wishes to keep the inherited property but doesn’t have the funds to pay off the reverse mortgage. Conventional lenders are not able to refinance reverse mortgages for an heir since the property is not in the heir’s name. Once the reverse mortgage is refinanced, the title can be transferred into the name the heir(s) who can then apply for a long-term lower cost conventional loan.