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Updated over 8 years ago, 03/20/2016

User Stats

3
Posts
0
Votes
Larry Perez
  • Investor
  • San Antonio, TX
0
Votes |
3
Posts

Refinance my FHA loan

Larry Perez
  • Investor
  • San Antonio, TX
Posted

Hello all,

I purchased a house 4 years ago for 145K with a 30yr @4.25% FHA loan (5% down). After living in the house for 1yr I decided to rent it out (does not cash flow well).

 I now owe 100K on the loan and was hoping to refinance and put 25k down to increase cash flow. My lender says it is not a good idea because interest rates on an investment refinance are too high.

Should I listen to my lender?

User Stats

1,841
Posts
800
Votes
Upen Patel
Lender
Pro Member
  • Lender
  • Nationwide Lender
800
Votes |
1,841
Posts
Upen Patel
Lender
Pro Member
  • Lender
  • Nationwide Lender
Replied

@Larry Perez The other thing you can do is a FHA Streamline refi to bring down the loan interest rate. You might be able to recast it to a 30 yr loan. This will help bring your monthly down.

  • Upen Patel
  • [email protected]
  • (571) 331-5161
  • User Stats

    22
    Posts
    6
    Votes
    Jamie Ware
    • Lender
    • Reading, PA
    6
    Votes |
    22
    Posts
    Jamie Ware
    • Lender
    • Reading, PA
    Replied

    @Upen Patel is 100% correct. This would be your best option especially with the extra funds to paydown the principal ($25k). 

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