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If I own two properties, is it advisable to consolidate the debt?

I was considering refinancing my properties and consolidating the debt into a single loan but I wanted to know whether or not this is a good idea or if there are advantages to keeping them separate by FValentine from Baton Rouge, Louisiana. Nov 13th 2012 Reply


Patrick McCarthy (PatrickM)
#23 ranked lender in Ohio - 196 contributions

Hello. If you combine the debts into one loan and you try to sell one in the future, you may not be able to get a release of that lien for that specific property. It can save you a little bit in costs to do 1 loan to cover both, but I don't see the benefit any other way. Hope this helps.

Nov 13th 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,714 contributions

Too much info missing.. Are you wanting to combine 2 mortgages on 2 properties into one mortgage on one property? if so, this can be done.. if you're looking to combine 2 mortgages on 2 properties into one mortgage against 2 properties, then this cannot be done using any type of conforming or conventional financing... if they were to allow it, and you defaulted on the loan, then which properties would the lender foreclose on?? One or both.. Hard Money lenders will often do these, but there won't be any advantage at all if you have to use HML... more info please.. 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.com

Nov 13th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,823 contributions

Possibly. If one of your properties is investment, consolidating / combining the balance with your primary residency is usually discouraged by accountants. If one is a vacation home and the other your primary residence, then it can make good sense to combine them. Many lenders offer rate incentives for larger balanced loans, and reduced disincentives for lower balanced loans. I would encourage you to work with a local Mortgage Banker/Broker. He should be able to help you identify the pros and the cons of doing two separate loans or one consolidated loan based on your particulars. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ Licensed in California and Arizona ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Nov 14th 2012
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Garth Cook (garth@garthcook.com)
#5 ranked lender in Louisiana - 12 contributions

It depends. You get a better interest rate on owner occupied properties. Can save money with one closing. It would depend on the amount of equity in the properties currently and the current interest rates. Call 225 300 8895 and ask for Garth if you have questions.

Nov 13th 2012
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Garth Cook (garth@garthcook.com)
#5 ranked lender in Louisiana - 12 contributions

It depends. You receive a better interest rate on owner occupied properties and closing costs would be lower. It would depend on the amount of equity and the current interest rate on each property. Call 225 300 8895 and ask for Garth.

Nov 13th 2012
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

The details make a difference. If both are at higher rates but both are relatively smaller loans you'd save some expenses by doing just one new mortgage and of course you'd have one mortgage to pay every month instead of two.

Nov 13th 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

Need More info.

Nov 13th 2012
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Barb Lanis (BarbLanis)
#70 ranked lender in Illinois - 663 contributions

Contact Garth, he has the best answer and also in your area. Good luck!

Nov 13th 2012
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