Posted on: 11th Oct, 2010 08:41 am
ok...here is the deal:
property 1: rental, current worth approx 225,000. perfect rental history @ 1450. mo. mortgage balance approx. 65000. 7 years left on 15 year loan, @5.2 (current mortgage payments $875, taxes $3500. yr, ins. $1200)
property 2: current value $150,000. mortgage balance 165,000. i live in this property. currently 5 months left on a 3 year arm. payment + taxes+ insurance = 1250. mo
personal info: $36,000. gross yearly. credit score approx 800. i have no other debt. (no cars, no c cards, no nothing)
i do have approx $80,000 in savings that i can play with and i need to know what is the best way to go.
do i pay off rental home to increase my income (i can profit about $1000. per month) then refinance?
do i just pay down the other home to be able to refinance? open to all suggestions.
property 1: rental, current worth approx 225,000. perfect rental history @ 1450. mo. mortgage balance approx. 65000. 7 years left on 15 year loan, @5.2 (current mortgage payments $875, taxes $3500. yr, ins. $1200)
property 2: current value $150,000. mortgage balance 165,000. i live in this property. currently 5 months left on a 3 year arm. payment + taxes+ insurance = 1250. mo
personal info: $36,000. gross yearly. credit score approx 800. i have no other debt. (no cars, no c cards, no nothing)
i do have approx $80,000 in savings that i can play with and i need to know what is the best way to go.
do i pay off rental home to increase my income (i can profit about $1000. per month) then refinance?
do i just pay down the other home to be able to refinance? open to all suggestions.
Hi Kate,
It will be better if you pay off your rental property and then apply for a refinance on your primary residence. Paying off the rental property will have a positive impact on your credit as well as your debt to income ratio. Thus, it will be easier for you to refinance your primary residence.
Take care
It will be better if you pay off your rental property and then apply for a refinance on your primary residence. Paying off the rental property will have a positive impact on your credit as well as your debt to income ratio. Thus, it will be easier for you to refinance your primary residence.
Take care