If you are looking for more Cash Flow from your multifamily properties, now is the time to look at refinancing or purchasing more investment properties. Fannie Mae and Freddie Mac interest rates are tied to the 10 year Treasuries (T-bills). The 10 year T-bills have been dropping consistently over the past few months.
Similar to refinancing your personal residence during dropping interest rates, it also makes sense to review your multifamily mortgages. With the lower interest rates Howell Investment Finance has recently been quoting, sponsors have been gaining more Cash Flow from their multifamily properties.
Lock in a low interest rate for 10 to 12+ years now
With Fannie Mae or Freddie Mac, you can lock in your low interest rate for 10, 12, or even 15 years. Not the typical 5 years you may be used to. At some time in the future, interest rates will go back up and having your interest rate locked in for many years will help to maximize your Cash Flow.
30 Year Amortizations are the normal
To increase your Cash Flow, when financing with Fannie Mae or Freddie Mac their normal is a 30 year amortization. Does your multifamily mortgage have a 20-25 year amortization, if it does and you want to increase your Cash Flow, you need to call Howell Investment Finance now.
Depending on your mortgage balance, it is very possible to refinance with either Fannie or Freddie and receive cash out for whatever purpose you wish. Howell Investment Finance has assisted other sponsors in getting cash out of one property to be used as the down payment for purchasing another multifamily property.
Also the loans are assumable, so when you decide to sell in the future, your investment property could be worth more than a competing property since your property would have the lower interest rate that could be assumed.
A Pre-Payment Penalty may not be a problem
If your current mortgage has a pre-payment penalty, that may not be a stopping point for you to get more Cash Flow. Depending on when your mortgage is due, some lenders will allow you to exit their mortgage with little or no pre-payment penalty as long as your deposit accounts stay at their bank. Fannie, Freddie, and HUD insured mortgages do not require your deposit accounts, you choose where you want your deposits to go.
If you are interested in increasing your Cash Flow by refinancing or purchasing another investment property, Howell Investment Finance can help. They specialize in financing with Fannie Mae, Freddie Mac, and HUD, they will assist you in finding the financing you need to pursue your investment goals. With lenders in Chicago, Minneapolis, New York, Washington, D.C. and Dallas they will find the right loan for you. Based in Ames, IA, they offer favorable interest rates and loan terms to investors across Iowa. With more than 25 years of experience, Howell Investment Finance can provide invaluable advice and guidance as you navigate the loan application process. Call (515) 233-8228 to schedule an appointment, or visit them online to view the different types of loans available.