House Hacking Refi Rate

[Dean V.]

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!

[Ryan Thomson]

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.