I have some money saved up that could pay off my 2nd mortgage which is at 8.25% and has a payment of approx $250/month, or could be used as a down-payment on a condo that could be rented for maybe a $100 profit each month.
Posts Tagged ‘second’
Should I stay away from a second mortgage interest only loan?
27
Mar
I’ve been approved for a 1st mortgage at a fixed rate of 7.38 and a 2n mortgage interest only at 10.425. This loan is for an investment property. I’ve been told that the 2nd loan is Home equity line of credit. How much will my payments go up on the 2nd mortgage and should I look for another loan. Thank You.
what qualifies as a second home for mortgage loan?
26
Mar
I am working overseas, I want to buy a house in Texas. Can I consider it to be a 2nd home and ask the mortgage company to give me interest as second home instead of calling it “investment property” ?
The interest rates and taxes for 2nd home is less than investment property.
It will be rented out till we come back to Texas.
Getting a second home that I will live in within 5/6 months with a low interest loan.?
26
Mar
I am a RE investor in training. And I just got a property that I am suppose to live in as my principal home. I will rent out the rest of the rooms to generate cash flow. However I want to buy another property to generate more cash flow. But I want to get a low loan rate if possible. Is it possible to get a second loan without having to get an investment loan with high interest?
I had a couple people tell me that in about 5-6 months I can write a letter to my lender and tell them that I dont like to live there anymore for any reason, ie hate the location, don’t like the neighbors, etc. and that I want to buy a second home and live in there. That way I can go out and get me another loan for a low rate and have that as my new principal property, while keeping the first home to rent out for cash flow. These guys already has 6 homes and tells me that is how they has been doing it. Is this legal?
loan at 350k 70.5% ltv cashout refi on second home or investment property 739 fico SIVA Hybird option arm 1.25
24
Mar
Start Rate
Second home mortgage vs. investment property mortgage?
18
Mar
We are considering buying a second (vacation) home. A cabin in the mountains, about 150 miles from where we live. It’s much cheaper to get a second home mortgage than an investment property mortgage, but we would ideally like to get some rental income from the property as well. It probably wouldn’t be a lot, definitely not enough to pay the mortgage. I’ve gotten a lot of hemming and hawing from the mortgage specialists I’ve spoken with about whether we’d qualify for a second home mortgage. Is there a specific line lenders use to separate a second home from an investment property? Any rental income at all? Or is there a threshold amount, or a threshold number of days, or percentage of owner occupancy? We’re going to be 100% honest with the lender, but we’d like to know in advance if we need to commit ourselves to a certain limitation on rental use.
Thanks!
I appreciate the answers, but they don’t quite get to the heart of my question, so let me rephrase it.
The home would primarily be for our personal vacation use. But – since we care about not committing mortgage fraud and want to be sure we’re on the right side of the law – we need to know if ANY amount of rental income is too much for that type of loan.
What we have in mind is letting people rent it on weekends we’re not using it. It would never be occupied by a tenant for more than a few days at a time. No long-term lease. It’s in a ski area and I imagine we could find renters for some of the weekends we don’t use it during the winter months.
We would probably stay there several whole weeks during the year, and numerous more weekends, and would probably be the ones to occupy the cabin more than 50% of the time it’s occupied.
Would that situation qualify for a second home mortgage? Or would any rental income at all mean we’d need an investment mortgage?