Help with creative refinancing

[Jacki O]

I bought my townhouse 4 years ago with a 5 year arm/interest only, in hopes of flipping it within that period. Over the last 4 years, I met my husband, got married and moved into his house. Selling the property has been a challenge, but I've been successful in renting it out for the last 2 years. I never let my mortgage company know about the rental. The arm expires this June. I looked into refinancing it to a 30 year fixed, however, the mortgage company gave me a really hard time as to why the property address does not match mailing address. I don't want to refinance it as a rental property, as the APR is at a higher rate. What would be the best way to approach the refi with the mortgage company to allow them to do it at an APR for a primary residence?

[David J.]

The way I see it is that you have two choises if you want an owner occ mortgage. Move back in and refi, or lie to the bank.

It really doesn't sound like either of these options are going to fit your needs since you don't want to move back in and you hopefully are not into mortgage fraud.

I vote to just take the conventional route and pay the higher interest rate. I am closing on a rental next week at 5.75%. Hard to complain about getting a 30 yr fixed at that rate whether I am living in it or not. I would suggest being honest. It will benefit you in the long run and you will sleep better.

If you let the place get empty you can change your address to the property and then refi. Loose a couple months rent but you would have a better chance selling the owner occ.