Posted on: 24th Apr, 2007 09:15 am
i have a rental property that i would like to refinance. i have two loans on it. my first is an option arm which is already adjusting, the 2nd is a heloc. will i be able to refinance only the 1st mortgage so that i can get my ltv% below 75%? also, will i be able to pull another heloc to pay down the first heloc with a lower rate?
If the house has appreciated in value then refinancing now will be quite suitable as it will help you to come out of the option arm. You can bring the LTV ratio below 75% or not will also depend on the equity that has developed.
"I have a rental property that I would like to refinance. I have two loans on it. My first is an option arm which is already adjusting, the 2nd is a HELOC. Will I be able to refinance only the 1st mortgage so that I can get my LTV% below 75%? Also, will I be able to pull another HELOC to pay down the first HELOC with a lower rate?"
I agree with Mirren, whether you can bring down the loan to value ratio for your mortgage will depend on the current equity of the property.
You need to calculate how much you owe presently on the mortgage and the value of this property, then you will be able to know how much equity has developed.
I agree with Mirren, whether you can bring down the loan to value ratio for your mortgage will depend on the current equity of the property.
You need to calculate how much you owe presently on the mortgage and the value of this property, then you will be able to know how much equity has developed.
Hi Refi,
Welcome to forums.
You may refinance the option ARM but I don't think it will be a feasible option to refinance both the loans within a short period of time. You can replace the option ARM with a new loan but give yourself some time, start making payments on the new loan and then think about refinancing the HELOC.
Thanks
Welcome to forums.
You may refinance the option ARM but I don't think it will be a feasible option to refinance both the loans within a short period of time. You can replace the option ARM with a new loan but give yourself some time, start making payments on the new loan and then think about refinancing the HELOC.
Thanks
Hi Refi,
If you are looking to refinance your rental property, the interest rates may be higher than an owner-occupied property. This is because you are using it for investment purposes. Hence you may find lenders offering rates at least 0.5% to 1% higher than that on a loan against owner-occupied property.
Thanks,
Sara
If you are looking to refinance your rental property, the interest rates may be higher than an owner-occupied property. This is because you are using it for investment purposes. Hence you may find lenders offering rates at least 0.5% to 1% higher than that on a loan against owner-occupied property.
Thanks,
Sara