Forgotten Your Password?

Need to Register?

Question Icon

Refi to rent, or should I sell?

I have a house worth 225k, with a 6% mortgage rate 30 year FRM, I've paid down to 150k. Now I'm deciding whether I want to rent it out; in which case I would refinance it; or sell it. Now seeing the housing industry staying rather stagnant and down, I'm more inclined to rent it out. Now if I refinance, can I get cash out to remodel/renovate the home to make it renter-ready? Or would I need a HELOC to do so. I'm planning on 4k worth of repairs and 1k in parts for some interior design additions (curtains, built-in home theater, two new faucets). I will be doing the repairs so I'll save on the labor. Any advice would be great. by newman_583_495 from Richmond, Virginia. Nov 23rd 2011 Reply


I would suggest refinancing because the entire amount with the cash out will save you a lot of money.I am licensed in Virginia and can help you with that.Call me Friday at 877-282-5789 and we can go over details.Thanks,Fred GlickU S Loans Mortgage LLCusloans.com

Nov 23rd 2011
0
0
Judy Wrenn (judywr_282_593)
#27 ranked lender in Virginia - 3 contributions

Do a refinance with a cash out for repairs if you are planning on renting the property you will not likely find a lender who will do a home equity line on an investment property. Call me to discuss details of both transactions. Judy Wrenn, Southern Trust Mortgage, 703-728-6169, e-mail judywrenn@southerntrust.mortgage.com

Nov 23rd 2011
0
0
Rudi Hofmann (CaPortfolioLoans)
#279 ranked lender in California - 380 contributions

If you refinance you must state if your property is going to be your primary residence or for investment purposes. So the first thing on this agenda is to make a decision about that.If you are going to rent it out I would certainly would forget about "built-in home theater." Your refinancing costs can be absorbed in your mortgage.If you are going to sell you may get a better price now than waiting. There's a ton of foreclosures that still haven't surfaced. You may see declining values for a few more years.Happy funding, Rudi

Nov 23rd 2011
0
0
Jedd Nabonsal (jeddnabonsal)
#520 ranked lender in California - 27 contributions

It sounds like you are living in the house. You could refinance it as an owner occupied loan to take advantage of the lower rates and pricing offered to owner occupants. You would then be obligated to live there for one year. After that, you can move out and rent it with the fantastic mortgage rate you got today. If you plan to move out right away and refinance it, then it would be a non-owner occupied refinance which may be harder to qualify for and will have a higher rate by at least .375% Pull the small amount of cash needed with the new first mortgage. Good Luck JeddNabonsal 310 433 1703 Los Angeles Pinnacle Bancorp.

Nov 23rd 2011
0
0
Marcus Buchanan (mbuchanan)
#310 ranked lender in California - 28 contributions

If your intentions are to rent it then refinancing would be a great move. However, if your going to sell it then there i say no to refinancing. Yes you can get cash out owner occupied or investment. If you could refinance it with cash out to do repairs and if all goes well a HELOC is always great to have for other investments, repairs and emergency funds.

Nov 23rd 2011
0
0
Brian Allen (ballen)
#43 ranked lender in Maryland - 191 contributions

Yes, you can refinance to a better rate and take cash out to do your remodel knowledge, trust and service is what you require. Contact me at ballen@accessnational.com

Nov 23rd 2011
0
0
Subscribe to our news feed.