Owner occupied and investment properties only. Rates, CLTV and amounts depend on various factors. Contact for more information.
Clients, who were referred by their CPA, recently bought a two-unit building and just finished the remodeling. As a result, they accumulated about $70,000 in credit card debts.
When they heard that the interest rates have come down, they called their mortgage broker who told them that paying off debts will create a “cash-out“–resulting in no benefits from refinancing.
We, the team at Pacific Bay Financial, looked at their situation differently.
Their current loan balance was $550,000 with an interest of 4.25% and monthly payments of $2,869. Instead of increasing the loan amount to cover the credit card debts, we suggested lowering the amount to the be within the conforming limit for two-unit buildings–$533,000.
Due to the low rate of 4.125% paired with no out of pocket closing costs, the new payment dropped to $2,665. The difference of $17,000 combined with $10,000 credit card debt was transferred into a line of credit (L/C) with a rate of 3.75% and $84/month payments.
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