Posted on: 24th Apr, 2007 07:22 am
hi,
i am looking to buy my first home and also looking at rental properties for investment. i was going to buy my home first before i buy a rental. however, a good rental deal came first. if i tell the mortgage company this is rental, will that give me a worse apr? is it better that i move into it until i find my desired home? will i have a probably obtaining a second mortgage after the mortgage for the rental?
pls help
i am looking to buy my first home and also looking at rental properties for investment. i was going to buy my home first before i buy a rental. however, a good rental deal came first. if i tell the mortgage company this is rental, will that give me a worse apr? is it better that i move into it until i find my desired home? will i have a probably obtaining a second mortgage after the mortgage for the rental?
pls help
"If I tell the mortgage company this is rental, will that give me a worse APR?"
Mortgage for rental properties do have different rates than what are quoted for residential properties. If you take a mortgage specifically stating that the property will be used for rental purposes then rates will be bit higher than what they are for residential loans.
Mortgage for rental properties do have different rates than what are quoted for residential properties. If you take a mortgage specifically stating that the property will be used for rental purposes then rates will be bit higher than what they are for residential loans.
"Hi,
I am looking to buy my first home and also looking at rental properties for investment. I was going to buy my home first before I buy a rental. However, a good rental deal came first. If I tell the mortgage company this is rental, will that give me a worse APR? Is it better that I move into it until I find my desired home? Will I have a probably obtaining a second mortgage after the mortgage for the rental?
pls help"
If you have not found a suitable home that you want to purchase then you should move into this house. To get a second mortgage for the new house will not be difficult but the rates can be higher as then you will already have a mortgage burden of this rental property.
Miller
I am looking to buy my first home and also looking at rental properties for investment. I was going to buy my home first before I buy a rental. However, a good rental deal came first. If I tell the mortgage company this is rental, will that give me a worse APR? Is it better that I move into it until I find my desired home? Will I have a probably obtaining a second mortgage after the mortgage for the rental?
pls help"
If you have not found a suitable home that you want to purchase then you should move into this house. To get a second mortgage for the new house will not be difficult but the rates can be higher as then you will already have a mortgage burden of this rental property.
Miller
Hi Xmljar,
Welcome to the forum.
I guess you will be buying a property first to rent it out. Well, in that case, the lender will be offering you slightly higher rate as it is an investment property and not owner-occupied. The APR may not be the worst of its kind but then it will be higher than if you have taken out a loan for the purchase of your primary home.
You can consider moving into the rental until and unless you can find a home of your own. Now, when you purchase a home of your own, you can take a first mortgage itself against the home you will be buying.
Second mortgage term is used to indicate a loan on a property where there is already a first loan. If you have bought a home loan against the rental and you need another loan for the new home, the loan on the new home does not become a second mortgage.
A second mortgage implies a loan subordinate to another loan taken out against the property prior to the former.
Hope this helps...
God bless you.
Samantha.
Welcome to the forum.
I guess you will be buying a property first to rent it out. Well, in that case, the lender will be offering you slightly higher rate as it is an investment property and not owner-occupied. The APR may not be the worst of its kind but then it will be higher than if you have taken out a loan for the purchase of your primary home.
You can consider moving into the rental until and unless you can find a home of your own. Now, when you purchase a home of your own, you can take a first mortgage itself against the home you will be buying.
Second mortgage term is used to indicate a loan on a property where there is already a first loan. If you have bought a home loan against the rental and you need another loan for the new home, the loan on the new home does not become a second mortgage.
A second mortgage implies a loan subordinate to another loan taken out against the property prior to the former.
Hope this helps...
God bless you.
Samantha.
"Is it better that I move into it until I find my desired home? "
Until you get the home you want to purchase, it will be better to use this one and when you do find the home, convert this one in to a rental.
Until you get the home you want to purchase, it will be better to use this one and when you do find the home, convert this one in to a rental.