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Mortgage Brokers Advice Plz regarding a loan/refi 20 yr old investor!? |
I am 20 yrs old I bought a duplex 4 months ago for 147,600 its appraised at 148,000 so I got it at top dollar. I got financing on 80/20 80%@7.5 adjustable rate (will go up in 2 years guaranteed) and 20%@10.75 fixed rate. I will be paying interest for the first 2 months. I am losing $200 on this monthly w/ tenants living there. It's suppose to be my primary residence. Refi penalty for the 80 loan is $3600 and no penalty for 20%. So my question is I got a loan on stated income, I figured I am losing $200/month*24=4800 in 2 years interest only from my own pocket. If I refi now $3600 penalty and maybe $3000 closing cost (estimation) so that's $6600 loss which I can live with 6600-4800=1800 difference I can live with that. But if I refi 30 yr fixed rate I have very low income i am a college student can I get possibly better rates to lower my down payment, I want to refi 0% down fixed 30yr rate is that possible? I want some advice plz I don't want to go bankrupt in 2 yrs when rates go up! Better ask an expert ! Good luck ! Source(s): http://index-go.com/finance-mortgage-bro... Property is a long term, at least 5year, investment. Expect to lose money now and gain money after 5 years, you cannot gain now and gain in future. To be fair. We just bought a home with the similar program you have. We were first told we would have to refinance the 2nd. year because the interest rate would go to the current mortgage rate of that year. We are now told we can refinance in 1 year to a fixed 30 year mortgage rate. You do not want anything like a variable rate mortgage, a balloon mortgage etc. The safest rate is locked in at a 30 yr. mortgage. after 2 years value of the property will be different, then the time you were buying the house. nobody can tell what interest rate going to be in 2 years, but remember you can always sell your house if you can't afford the new payments. rent will also go up if the interest rate will go up. now you buy property ,0% down payment, you probably pay $3000-$4000 closing costs and you going to "loose $2400 over 2 years? try to ask your stock broker to lend you his money for your stocks and take the risk like bank take with you to give you 100% financing. with your almost 0% investment, you have chance to make some money and i thing it's pretty good deal. you want to play investor, you have take risks and learn and do better next time. good luck and stop whining in about every 2 hours. Most mortgage companies will not refinance you until you have made at least 12 payments on your property. It will show them what kind of payer you are. If I were you I would leave your loan the way it is until it is ready to adjust in 2 years. If you have to pay approx. $6600 to refinance it is not worth it right now. Plus it seems like you are maxed out on your equity. I am sure you do not have that amount of money to put into a loan right now. Just remember since they are rentals you can always raise the rent amounts on the units when the lease is up. Before you know it you will be getting more monthly rent, and building equity. Don't over think it. It is an investment. Think long term. so what exactly do you want? are you trying to ensure that you will not be priced out of the duplex due to montly cost when rates go up? are you struggling now? I would say wiat for the 30 year fixed. Might have no other option if the new appraised value is not over 151,200 because of the prepay. chriskemp@us-homeloans.net |
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