I would like to know what should done for the refinance for rental properties. To make the issue for specific, I have the following simplified examples for the purpose to understanding the concept. What should be done for the loan cost, basis, and the credit when it is more than the total cost.
[1]
2000 Loan cost (Admin fee, Credit report, Title etc)
1000 Recording fees, Transfer tax, etc.
500 Escrow (insurance, HOA, etc)
(0) Lender credit
[2]
2000 Loan cost (Admin fee, Credit report, Title etc)
1000 Recording fees, Transfer tax, etc.
500 Escrow (insurance, HOA, etc)
(1500) Lender credit (less than loan cost)
[3]
2000 Loan cost (Admin fee, Credit report, Title etc)
1000 Recording fees, Transfer tax, etc.
500 Escrow (insurance, HOA, etc)
(2200) Lender credit (more than loan cost but less than loan cost and basis combined)
[4]
2000 Loan cost (Admin fee, Credit report, Title etc)
1000 Recording fees, Transfer tax, etc.
500 Escrow (insurance, HOA, etc)
(4300) Lender credit (more than loan cost and basis combined)