Posted on: 08th Sep, 2009 08:29 am
Our primary home recently became an investment property. We purchased the house with 5% down, and continued to make extra payments to get the loan paid down (we have 13% paid of the purchase price and we have owned the house for 3 years). However being in the military we have now received orders and have moved across country, leaving our house which is upside down, and now considered an investment property, and only able to rent for half the mortgage value. The interest rate is 6.75%, and although I have save enough money over the last 3 years to pay the difference between the current value and the mortgage and even pay an extra 10% down the bank is now asking for 25% because is it an investment. Any suggestions is there any banks which will low % down on investment properties given the circumstances?
your best bet is the lender with whom you have the loan currently, as in seeking a modification of the existing loan. other lenders are going to be sticking to their guns , essentially because investment properties carry far more inherent risk than do primary residences.
i think you might be better served to use the savings you have accumulated to help you in making the monthly payments. since you'll have half the mortgage payment every month, you'll need to add the second half of course. paying down the balance is probably not of value at this time - you'll gain far more by trying to wait out the market to the point that your house becomes more valuable once again - unless, of course, making that half-payment becomes unreasonable for you to do.
it's difficult to advise, as we don't know what values will do in general, though in some areas, stability seems to be happening; and once we begin to see stability, the natural assumption is that we may begin to see gains in value once again. if you can wait it out, that seems the best option now.
i think you might be better served to use the savings you have accumulated to help you in making the monthly payments. since you'll have half the mortgage payment every month, you'll need to add the second half of course. paying down the balance is probably not of value at this time - you'll gain far more by trying to wait out the market to the point that your house becomes more valuable once again - unless, of course, making that half-payment becomes unreasonable for you to do.
it's difficult to advise, as we don't know what values will do in general, though in some areas, stability seems to be happening; and once we begin to see stability, the natural assumption is that we may begin to see gains in value once again. if you can wait it out, that seems the best option now.
I Can help with your mortgage!
I would love to help. Email me, and let's discuss!
MSmith@PrecisionFundingUSA.com
M
I am on line now!
I would love to help. Email me, and let's discuss!
MSmith@PrecisionFundingUSA.com
M
I am on line now!
me too...hold on - are you sure you dont work for IMPRECISION funding?
I have two investment house would love refiance, interest at 7% but both house are upside down about 30K each. Any help out there? Have solid rental history last 8 years and no late payments....
Hi Rienee,
A query similar to yours has been answered in the given page:
http://www.mortgagefit.com/predeal/about55850.html
Please take a look at it. I hope it will help you.
Thanks
A query similar to yours has been answered in the given page:
http://www.mortgagefit.com/predeal/about55850.html
Please take a look at it. I hope it will help you.
Thanks