what are my options for this rental property?
by Mortgage Rates on Tuesday, November 2nd, 2010 | 2 Comments
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You’ve supposedly put out a lot of money to not have a plan. You usually do your research first. I think you’re dreaming. . .
You have many options with this property. However, it really depends on how much it will appraise at and how much equity you have on it.
Refinance option: You can refinance the existing mortgage (if any) up to 80% of the appraised value. With your example, if the property is appraised at $170K, then you can loan up to $136K. This process is little more involved and may increase/decreae your loan rate. Also, there will be closing costs involved with this option.
Home Equity Credit Line option: You can have a HELOC up to 90% of the appraised value. This will give you access to more of your equity and usually have minimal closing costs if any. However, the rate is higher on a HELOC than a traditional refinance. Also the rate is variable which can be a gamble.
Home Equity Loan: This is pretty much same as HELOC above but you take out up to 90% as a fixed rate loan. This type of 2nd mortgage has lower rate than line of credit and the rates are fixed. Also with minimal closing cost if any.
If you need help with any type of residential/commercial loans, you can email me and I will be glad to help you and answer your questions. My email is on my profile.
Good Luck!