Posted on: 22nd Jan, 2009 10:11 pm
i have a rental property with a balance of 92k at 5% 7/30 which will expire in 2010. i am thinking of paying it off by refinancing the home i live in and take a cash out. i have a balance of 226k on this at 6.25%, 30 year. i am on the 9th year. i have ample of equity on both homes. is this wise to do? i am 59.5 years old, and my job is relocating out of state by end of this year. i want to do the refinance in case i chose not to move with the job. thank you in advance for some advice.
Hi moi,
Refinancing your present home to pay off the rental property is not a bad idea but you should remember that as you refinance the property, you will have to pay the closing costs for the refinance. If you can afford it, then you can go for a refinance. Moreover, refinancing a loan will be a good idea if you are planning to live in the property for a longer period of time. If you are planning to move away from the property, then refinancing is not a good idea.
Thanks,
Jerry
Refinancing your present home to pay off the rental property is not a bad idea but you should remember that as you refinance the property, you will have to pay the closing costs for the refinance. If you can afford it, then you can go for a refinance. Moreover, refinancing a loan will be a good idea if you are planning to live in the property for a longer period of time. If you are planning to move away from the property, then refinancing is not a good idea.
Thanks,
Jerry
Jerry is right. And also you have to take into account that first years you pay almost just interest payments. That means that if you refinance too soon, you will restart your amortization process.
I am on line now!
i would love to have the last poster banned from this site, as he refuses to comply with the spirit and requirements of the community.
blatant advertising is a taboo on MortgageFit. Mr. Smith knows this, doesn't care, and refuses to comply with requests to cease. i'm hopeful that people heed our advice and avoid doing business with someone who is clearly not happy with compliance. after all, compliance is an absolute in the mortgage industry. i would be remiss if i didn't point this out to the public.
blatant advertising is a taboo on MortgageFit. Mr. Smith knows this, doesn't care, and refuses to comply with requests to cease. i'm hopeful that people heed our advice and avoid doing business with someone who is clearly not happy with compliance. after all, compliance is an absolute in the mortgage industry. i would be remiss if i didn't point this out to the public.
Thank you all for the response, and thank you very much for the last post. It looks like interest rates are creeping up again. If I could only qualify for the 15 years mortgage, I would do it. But with my debt to income ratio, it's not possible even though I have an excellent credit.
Again, thank you for the responses.
Again, thank you for the responses.
Moi, maybe another twist on your scenario. SOmething to think about anyway.,...
Think about selling both places, take all of the quity and purchase a multi family building. Live in one unit and rent out the rest. Not only can you potentially live mortgage free but you may also have an income stream for the rest of your life.
Think about selling both places, take all of the quity and purchase a multi family building. Live in one unit and rent out the rest. Not only can you potentially live mortgage free but you may also have an income stream for the rest of your life.
