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Message
No replies on Money Talk Board so here it goes/ Refi- Legal Question
Posted on 4/25/11 at 7:51 pm
Posted on 4/25/11 at 7:51 pm
LINK
I currently have a mortgage on a rental property in my name. I lived there for several years before getting married and purchasing another home. I had to refinance the loan about 2 years ago because the initial loan was a 7 year ARM. The current mortgage is a 30 year conventional with 28 years left at 5.5%.
I have a business and want to roll this property into it through the use of a Quit Claim. The bank that I have some other rental mortgages with will do the deal but at 6%, no closing cost or fees but again with a 15 year ammortization with the a 7 year term.
My question is, is it worth doing this for the legal protection of having the rental in my LLC's name versus my name. Can I Quit Claim the property and just keep paying the mortgage with the 5.5% rate or will that defeat the purpose of putting the property in the companies name.
TIA and I know CSB.
How much more will it cost me in the next 7 years to go from 5.5 to 6%? I owe 120K.
ETA: 15 year ammo schedule but 7 year term.
I currently have a mortgage on a rental property in my name. I lived there for several years before getting married and purchasing another home. I had to refinance the loan about 2 years ago because the initial loan was a 7 year ARM. The current mortgage is a 30 year conventional with 28 years left at 5.5%.
I have a business and want to roll this property into it through the use of a Quit Claim. The bank that I have some other rental mortgages with will do the deal but at 6%, no closing cost or fees but again with a 15 year ammortization with the a 7 year term.
My question is, is it worth doing this for the legal protection of having the rental in my LLC's name versus my name. Can I Quit Claim the property and just keep paying the mortgage with the 5.5% rate or will that defeat the purpose of putting the property in the companies name.
TIA and I know CSB.
How much more will it cost me in the next 7 years to go from 5.5 to 6%? I owe 120K.
ETA: 15 year ammo schedule but 7 year term.
This post was edited on 4/25/11 at 8:17 pm
4
Posted on 4/25/11 at 7:54 pm to StrangeBrew
you couldn't just cut and paste it here?
Posted on 4/25/11 at 8:18 pm to Kafka
I see your point.
Posted on 4/25/11 at 8:26 pm to StrangeBrew
Go to dinkytown.com for your amortization schedule. Most deeds (DCM or Deed of Trusts) say that the property cannot be Quit Claimed while they have the loan against it to anyone else/another entity without the lenders permission. Before you make your decision, you might want to check with your current mortgage company to see if this is even an option.
Posted on 4/25/11 at 8:38 pm to East TN Tiger
Thanks very much./
Posted on 4/26/11 at 8:28 am to StrangeBrew
quote:
My question is, is it worth doing this for the legal protection of having the rental in my LLC's name versus my name.
How much liability coverage do you currently have on the property? It would probably be cheaper if you add/increase liability coverage on the property and/or add a large umbrella policy to your current home. A lot of times you can add $1M+ umbrella for $100-$200 annually, but typically are required to raise limits on your autos to do this.
Posted on 4/26/11 at 9:18 am to tirebiter
quote:
A lot of times you can add $1M+ umbrella for $100-$200 annually, but typically are required to raise limits on your autos to do this.
AND you have to have BOTH your homeowners and auto coverage with the SAME company. Otherwise they won't write one.
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