Refinance help...
A couple of years ago I purchased a home for my parents to live in. It is not a rental property, but it is located within 15 miles or so of my primary residence. I have a mortgage on my parents' place and I would like to refinance the home a lower rate. I contacted two banks, however, and was told that they couldn't handle the loan under Fannie/Freddie? (I forget which) rules because my parents' home would have to be treated as a "vacation" vice "rental" type of second home and it is too close to my primary residence to qualify. I'd like to take advantage of lower interest rates. Any suggestions? RobertRelevant details:Fixed 30YR Rate: 6.375%Payment: $1,995Principal balance: $309,000Estimated current appraisal: $400,000Current credit score: 790No mortgage on primary residence. by rober1950 from Dallas, Texas. Dec 28th 2009
Leo Harvey (LHARVEY)
#6 ranked lender in Pennsylvania - 149 contributions
Hi Robert: This is a reality of today's mortgage marketplace. Unfortunately the info both lenders gave you is correct. You can't have two primary residences. You may be able to do a rate/ term refinance on the home under an investor program depending on the relevant LTV and get a rate under your current 6.375. In reality it is an investment property as you own it and are receiving the benefit of future value increases even though you are not collecting rent. based on the info you provided the LTV should allow you to qualify. You would also have to qualify other factors such as income and debt ratios but I believe a rate in the mid 5's is possible. You should speak to one of the lenders on the site who is licensed in your state.
Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions
There may be something we can do if there is no mortgage on your primary. Please give me a call to discuss. 732-759-8189 x-102
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