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Updated almost 13 years ago on . Most recent reply

Account Closed
  • Northville, MI
0
Votes |
1
Posts

Re-fi of rental property previously primary residence

Account Closed
  • Northville, MI
Posted

I am the current owner of 2 rental properties, not by choice. I lived in a single family house and when I got married we moved into my wife’s condo in a much more desirable part of town. So we rented the house. Then we had a child and a 2 bdrm condo was much too small so we rented that (selling not possible) as well. At first I saw my property situation as an unfortunate means to an end, but since finding BP and all of the great people and information within, I’m starting to treat this more like a business. My question is about mortgages for rental properties. The mortgage that I have on the single family home is at %6.375, obviously I can do quite a bit better through re-fi. However the home was my primary residence when I got the mortgage. Is there a different type of mortgage for a non-primary residence rental or is it the same loan regardless. I’ve never done anything in the past because I thought I may have to convert to some type of commercial type loan at a higher interest rate. I’d love to re-fi because I could actually go from a small loss to a small profit on this property with a decent interest rate. Any advice would be greatly appreciated.

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