Yep... no problem.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.comFeb 16th 2013
There are a number of moving parts to your situation: What are the current rates paid on both properties; for how long do you plan to hold each property (even "don't know" has its own strategy); loan-to-value is important because rental refinance rates are very good when the equity is 40% or more;what is your cash flow tolerance for payments;what is the rental's interest expenses relative to rental income; what is your tax bracket; and the general issues of Income and Asset Qualifying.Absent any one of the components above, you will not get the best possible scenario for this undertaking Also, there are a few other angles from which to view your situation but they fall under the purview of your accountant. As is the case with quick responses like this, more questions are raised than answered. If you would like to talk about it more you may reach me directly at 800-696-0696.Bruce ConnCALIFORNIA Equity & Loan"Quickly, professionally, at the best terms available."Feb 15th 2013
I approach the prospect of refinancing one's primary property to pay off a rental property with a prejudiceof putting the primary property first for the vast majority of prospective borrowers.You really should have well thought out reasons for using this equity to pay off a rental property. Perhaps you findat today's rates your monthly payment on the primary property is excellent and you like the cash flow from the rentalproperty after paying it off. At least you are down to paying only one mortgage (assuming no other rental properties.)It really is all math, if you do not mind taking the cash out of your primary property to pay a rental property off.What works for you is the question and it would be good to view the math in refinancing your primary property solely for a monthly savings, as well as the rental. It is late and I felt like answering a question though perhaps answered well already!I would be happy to go over the scenarios to see what makes sense. Please do call!Feb 15th 2013
You question isn't detailed enough... You can refinance the primary to pay off a rental... But you may want to think it further. Now you are adding debt on the primary home. Not really a great idea if something were to go wrong down the line. For example, if you run into financial issues, letting the rental property be foreclosed on is sure better than having the house you live in foreclosed on.Feb 16th 2013
Sherea, if I read correctly isn't it just advantegeous to cash out the investment property where you have a $1600 a month rental income using 70% LTV using those numbers you would be left with approcimatel $90k to due the repairs and what ever, of course the loan be dependent upon the required debt ratios.Feb 16th 2013
Seems like you have looked at all the options and gotten some good advice. Go ahead and do it, if you have some other high cost debts you might want to pay those off as well but I recommend using your improved cash flow to make extra principal payments on the new mortgage as often as possible, even if it just an extra 50-100 a month.Feb 16th 2013
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