A returning past client contacted us to refinance and cash out on the building. The clients current loan was going to be rolling out of the fixed term and transitioning to an adjustable rate mortgage. The assignment was to investigate whether we could lower the rate & obtain some cash out at the same time.
During our due diligence we wanted to achieve the clients goals while also at the same time placing them into the longest fixed rate term possible. The big challenge was that our borrower had retired since the last time we financed them, and therefore besides the rental income on the property they only had some social security income. Previously when employed they had additional income that was now not available for us to use in qualifying in global debt coverage calculations. Additionally, rents were low and due to the current COVID environment it was not realistic to suggest a rent increase.
The ALB team identified the top programs that were either 7 or 10 year fixed and the borrower decided on one of the 7 year fixed programs that was presented. Ultimately, we were able to lower the rate by a good amount and helped obtain some cashout at the same time. Nothing more satisfying than client loyalty & continued support!