To refinance or not?

[Ann Baker]

Hello,

What's the best strategy in the following situation? A 3 unit plex currently has the mortgage under the name of an individual who no longer has any employment income. It's an adjustable loan so the goal is to get a fixed loan. What are the best options? Can we get someone else to take over the loan and will that result in property taxes getting reassessed? Or should we try to pay off the loan by borrowing funds elsewhere?

[John S.]

A local bank/credit union or mortgage broker may be able to help. Most lenders will not allow someone else to take over the loan, since they've done their due diligence on and approved the person on the loan as the borrower. If the property is profitable, a commercial loan may be an option since they are less concerned with factors outside the property itself. The rates will likely be a little higher than they would be for a residential mortgage but it might be the best option, especially in this lending environment. You may not be able to get a 30 year fixed rate, but you should at least be able to get a pretty low rate locked in for minimum 5 years.