On behalf of a New Jersey resident, we obtained cash-out refinancing for two of his rental investment properties in Arizona.
For one of the Arizona properties, his terms included 75% loan-to-value (LTV) and a 5/1 adjustable-rate mortgage (ARM) over a 30-year term with the interest rate fixed at 7.125% for the first 5 years and adjusted annually thereafter.
For his other Arizona property, his terms included 61% LTV and a 5/1 ARM over 30 years with the interest rate fixed at 6.75% for the first 5 years. One of the challenges for this property was the appraisal showed a lower market value than anticipated due to a rotting roof over the patio. Despite the roof issue, we were still able to get this property approved for refinancing.
Our client plans to use the cash-out proceeds to acquire additional real estate overseas.
