Interest Rates will be Rising, Lock-in Rate NOW for Next 35 Years

It's Time to Refinance with HUD

With the interest rates rising, you might be trying to decide what are your best options. Do you get tired of refinancing every five years and then wondering where the interest rates will be the next time you refinance? Have you ever wondered what would happen should your current lender decide not to refinance your properties when it is time to refinance? Plus keeping track of and then gathering all the needed global finance documents that are needed can be a tireless exercise in futility.

What is the Benefit of refinancing with HUD?

• 35-year term so you may never need to refinance.
• 35-year amortization so you will greatly increase your properties cash flow.
• HUD mortgages are non-recourse, no global finances needed.
• 80% LTV with possible unrestricted cash out at closing.
• HUD mortgages are assumable, could be valuable when you want to sell with the rising interest rates right now.

What about my current Prepayment Penalty? 

You need to review your prepayment penalty and see what the amount is and when your loan term is due. Timing could help as you may find if you wait a month or two, on a Step-Down Prepayment penalty, your prepayment could be reduced by 1% on your loan anniversary date. There are times when it is worth paying the prepayment penalty in order to get a new long term mortgage. You need to calculate what the recapture period is to see if it makes sense. Many decisions need to be made to go this route. 

• What if you are getting unrestricted cash out to make needed capital improvements or to use the cash-out to acquire another property? These Opportunity Costs need to be reviewed as it may make sense to pay your prepayment penalty now to get that unrestricted cash out. 
• Where do you think the interest rates will be when you refinance? 
• Is it better to pay the prepayment penalty now or roll the dice that rates will still be low when it is your refinancing time?

Every loan is different and why you should call Howell Investment Finance to review your loan and see if it makes sense to wait or refinance now.

What do I need to get a loan?

You need to work with a commercial mortgage broker that specializes in HUD financing. Howell Investment Finance specializes in financing multifamily and senior housing properties with HUD, Fannie Mae, Freddie Mac and CMBS. More than likely we have seen the bottom of interest rates with the current rise in inflation, as they will be increasing in the near future. Why worry where your interest rate will be the next time you need to refinance one of your properties. Call Howell Investment Finance now and see about locking in your interest rate for the next 35 years.

With creative solutions and extensive expertise financing multi-family buildings and senior housing, Howell Investment Finance in Ames, IA, is ready to help get your real estate investment refinanced. They’ve successfully closed over $100 million in loans for investors throughout Iowa. Visit their website to learn more about their financing options, get more advice by calling (515) 233-8228 to increase the cash flow of your properties.