House Hacking Refi Rate

House Hacking Refi Rate

Member since 2023 · 2 posts · 2 votes

Hey everyone! Looking to "house hack" at some point in the near future (recent grad stashing cash for now) to take advantage of a more favorable interest rate and pay less down, and had a question: Say I "hack" Property #1 for a year getting a primary residence interest rate, and move out after a year (and now rent out the entirety of Property #1) and repeat the process with a new property, Property #2, for which I get a primary residence interest rate as I intend to occupy it for a year. If interest rates go down in a year and I want to refi the loan on Property #1, will I still get the more advantageous primary residence interest rate since I did originally use the property as a primary residence, or will I have to refi into a loan with an investment property interest rate, since the entirety of the property would be rented out at the time of refi? Thanks a lot in advance!

1Reply
9 views

Most Popular Reply

Ryan ThomsonBusiness Member
Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
3y

Hey @Dean V. if you move out you will not be able to refinance that property as a primary residence. It will be an investment property refinance. For most lenders you will only be able to refinance if the LTV is 75-80%. It is very difficult to make that happen after 1 year. The property would have had to appreciate like crazy.

The Assumable Guy544 Reviews
See this reply in the discussion

4 Replies

Jump to latestLatest
  • Lender · Fort Lauderdale, FL (Lending in FL CT GA MI PA) · Member since 2022 · 470 posts · 349 votes
    3y

    Hey Dean, in your scenario, if property 1 is being rented when you refi, you will get the investment loan rate and terms. It still may be worth it if the rates drop enough. 

  • Member since 2023 · 2 posts · 2 votes
    3y

    Got it, thank you very much Ash!

  • Ryan ThomsonBusiness Member
    Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    Hey @Dean V. if you move out you will not be able to refinance that property as a primary residence. It will be an investment property refinance. For most lenders you will only be able to refinance if the LTV is 75-80%. It is very difficult to make that happen after 1 year. The property would have had to appreciate like crazy.

    The Assumable Guy544 Reviews
  • Member since 2022 · 405 posts · 455 votes
    3y

    Being able to refi depends on how much equity you have. I assume you are looking to get an FHA loan or conventional loan with the least amount due. If this is the case, you need to look at the amortization over time and you will see if it will take quite a few years until you will be at 75%/80% LTV and be able to refi.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.