Posted on: 06th Aug, 2009 03:43 pm
i bought my 1st home in 2003 and lived in it for 4 years (2003-2007). i bought a 2nd home in 2007, which became my primary residence, and rented out my 1st home. if i want to refinance my 1st home now, is the bank going to considered it as an investment property (and charge me extra points for refinancing an investment property)? or does the fact that i lived in it as a primary residence for 4 years help me in any way?
thanks!
thanks!
Yes the banks will consider that property an investment. However, it does not mean you will pay extra points. You will most likely have a higher rate.
Guest
Your 1st home will be considred as an Investment property.
Your intrest rate wlll be based on your income, credit score and DTI.
Since this is an investment property, the bank may consider this as little higher risk and charge you a higher rate
Good luck and feel free to ask
Your 1st home will be considred as an Investment property.
Your intrest rate wlll be based on your income, credit score and DTI.
Since this is an investment property, the bank may consider this as little higher risk and charge you a higher rate
Good luck and feel free to ask
Thanks for the quick responses.
The bank where I am refinancing says my interest rate will be the same whether it is investment property or primary residence, but I will have to pay 1.675 points because it is an investment property (more if LTV is more than 75%)
The bank where I am refinancing says my interest rate will be the same whether it is investment property or primary residence, but I will have to pay 1.675 points because it is an investment property (more if LTV is more than 75%)
Well...all things being equal (no points) your rate would be higher. You probably have the option to also pay zero points in exchange for a higher rate.