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Updated over 13 years ago on . Most recent reply
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Which mortgage should I take?
It looks like I have finally found a small bank that will approve a mortgage for me. I currently own my primary residence & rental free and clear. It's not approved yet, but here are the quotes I was given:
PRIMARY residence, worth $108,000 at 80% loan to value, the loan amount would be up to $86,400. At 4.375% the monthly payment would be $431.88.
RENTAL property worth $70,000 at 75% loan to value, the loan amount would be up to $52,500. At 4.875% the monthly payment would be $277.83.
These are for 30 year mortgages.
Obviously the rate on the primary residence is better, and I can potentially borrow more money. But I am not sure I want to live in this house forever (haven't decided yet). Will I be "trapped" in this house to keep the low rate? Is there a minimum number of years I should plan on staying in the primary residence if I take that loan to make it worthwhile? Or should I go with the rental property for the mortgage?
(the goal of getting the mortgage is to help buy another rental). Thanks.