"Leaked Secret" from Mortgage Secrets...

The MLS Listed Refinance Secret

"One of the biggest (and most expensive) mistakes I see investors make is listing a property for sale before they have put it into permanent financing. Many of the investors I work with use hard money to purchase fix and flips.

These loans are pretty expensive - usually 4+ points origination, 15% interest rates and usually very short terms - like six months.

Everybody likes to think that their house will sell quickly and maybe it will. But then again, maybe it won't.

If you think that you are going to take longer than the six months to finish the work on the house and get it sold and/or you just want to reduce your monthly holding costs by half then you probably want to do a rate and term refinance against the current appraised value to get it out of that 15% loan and into something much cheaper.

There are a ton of conventional lenders that will do this "unseasoned" deal against the current appraised value but they almost all have a rule that says if the property is listed for sale currently OR within the last six months, then it is an automatic denial..."

- Susan Lassiter-Lyons

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