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Started By
Message
Is it possible to refinance a mortage for current home to make it a rental
Posted on 10/20/16 at 7:29 am
Posted on 10/20/16 at 7:29 am
property, but not pay full mortgage fees?
3
Posted on 10/20/16 at 8:45 am to Shane4689
Why would you even refinance?
Posted on 10/20/16 at 9:23 am to Shane4689
this wouldn't be beneficial.
Posted on 10/20/16 at 9:59 am to tom
That's what I'm wondering. Why the need to refinance?
Posted on 10/20/16 at 10:35 am to notiger1997
I think he is worried about the technical ability for the mortgage holder to call the mortgage due in full for not being owner occupied
This post was edited on 10/20/16 at 10:36 am
Posted on 10/20/16 at 10:37 am to Shane4689
Yes I guess it is possible to refinance a current home as an investment property if that is your intentions, but the rate is normally going to be higher than what you probably have.
You could pay less mortgage fees by going up in interest rate? There's no "free lunch" though
You could pay less mortgage fees by going up in interest rate? There's no "free lunch" though
Posted on 10/20/16 at 10:57 am to Teddy Ruxpin
quote:
Teddy Ruxpin
quote:
I think he is worried about the technical ability for the mortgage holder to call the mortgage due in full for not being owner occupied
It's definitely a concern. You sign a litany of disclosures that affirm and attest that you as the owner will occupy the subject property as your primary residence.
They lend the money to you with an interest rate which an expression of your risk as a mortgagor. That risk would increase if you were not occupying the property, which means it would cost you more to get the same amount of money (if not less).
Gotta be careful with not refinancing. The print isn't all that fine about owner occupied attestations, either. It's pretty black and white, front and center.
This post was edited on 10/20/16 at 10:58 am
Posted on 10/20/16 at 11:04 am to GFunk
I purchased a house in 2010, moved out in 2013 to rent it and refinanced in 2015 for a cheaper rate. They were well aware that it was a rental property that was not my primary residence and I still got a lower rate.
Posted on 10/20/16 at 11:09 am to TigerRob20
That's not the norm though. As said, you could easily get a mortgage as a rental property the standard is about prime plus 1-1.25%. So they are still good rates. You can roll the cost into the mortgage, but there's not really a way to get around the fees.
Posted on 10/20/16 at 12:32 pm to TigerRob20
Whether you'd like to sign legal paperwork attesting upon penalty of law that you are doing something when you aren't is up to everyone's own particular appetite for risk. Some may agree with you. Some may be more cautious.
I know plenty of folks in your situation. I'm not saying they call mortgages due left and right. What I'm saying is that you've signed paperwork in front of either a Non-Attorney Notary or a Real Estate Attorney at closing that exposes you to the potential for risk. There's no debate.
...and don't think your loan officer cares a bit. He's interested in the loan closing and getting paid. You are the one telling the lender you'll occupy it, not him. He's got plenty of plausible deniability in that scenario.
Like I mentioned before with a lot of things in life, it's all about how much of an appetite for risk you have. Your mileage may vary.
I know plenty of folks in your situation. I'm not saying they call mortgages due left and right. What I'm saying is that you've signed paperwork in front of either a Non-Attorney Notary or a Real Estate Attorney at closing that exposes you to the potential for risk. There's no debate.
...and don't think your loan officer cares a bit. He's interested in the loan closing and getting paid. You are the one telling the lender you'll occupy it, not him. He's got plenty of plausible deniability in that scenario.
Like I mentioned before with a lot of things in life, it's all about how much of an appetite for risk you have. Your mileage may vary.
This post was edited on 10/20/16 at 12:35 pm
Posted on 10/20/16 at 1:10 pm to GFunk
quote:
GFunk
The first page of my loan application says that the Property will be an investment. I never withheld any information from anyone involved in the process. As far as I know, I have no potential risk here for anything, but I guess I could be wrong.
Feel free to enlighten me, since you think I'm at risk here.
This post was edited on 10/20/16 at 1:17 pm
Posted on 10/20/16 at 1:22 pm to TigerRob20
quote:
TigerRob20
quote:
The first page of my loan application says that the Property will be an investment. I never withheld any information from anyone involved in the process. As far as I know, I have no potential risk here for anything, but I guess I could be wrong.
Feel free to enlighten me, since you think I'm at risk here.
Hey Rob, my apologies. I obviously misinterpreted your reply. I thought you were saying that you indicated it was an Owner Occupied property and the Loan Officer/Lender knew that you weren't going to occupy it as your Primary Residence.
No worries
Posted on 10/20/16 at 1:33 pm to GFunk
quote:
No worries
Ok good, you kinda scared me there!
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