Do I pay the higher rate on the 2nd home?
Hi, I have a quick question since I couldn’t find proper answers on google. I own a principal residence that I’d like to keep and put up for rent. I have a great rate (sub 3) and I have a mortgage as our primary. We don’t plan on selling our property so we decided to put it up for rent, while we purchase a house in an area surrounded by more families and kids in the neighborhood. Here are some questions. 1. Do I need to refinance my current house if I bought a new one? 2. Will I purchase my second house as an investor first and then refinance it to primary? Or am I left with no choice with paying a higher rate on the second house. by neuffer817 from Alhambra, California. Jun 27th 2022
Dave Skow (daveskow)
#15 ranked lender in Washington - 455 contributions
1) no need to refinance the present home 2) for the new home purchase - you should receive the best rates as this sounds like it is a primary home purchase transaction fyi - if you need to have the current loan payment offset by rental income to qualify - you will need to have a tenant in the wings and be able to provide a signed lease agreement ..if you can qualify with both payments - then no need for this step
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,852 contributions
1) You do not need to refinance your current home in most cases. 2) You would be purchasing the new home as a standard owner occupied home. I provide home mortgage loans in MN WI IA ND SD. Find me at WI-MortgageBroker.com - Cambria Mortgage, NMLS 274132
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