When you convert your investment property to primary residence are you required to notify your lender and refi?

What if you convert from primary residence to investment property? Do you have to notify your lender? Do you have to refi? Aren't the interest rates different for primary residence and investment properties?

Responses:

NOPE, do not have to tell them, in either case Generally owner occupied property has more favorable mortgage terms, lower down payment and lower interest rate Also your insurance is cheaper when owner occupied Thus it may be to your advantage to seek a Refi or Loan Modification from your lender when converting investment property into owner occupied. Loan modification is a LOT cheaper than a refi if you can get it
You're not required to refinance it but it would more than likely be in your best interest. Since the financing on an investment property carries much more risk than a primary residence the rates are either a lot higher or the costs of the loan are significantly more. If you financed it as an investment property when you bought it and now live in it as a primary you will be able to benefit from a refi. It will almost certainly lower your rate and better your situation. If you have any other questions check out this company i used to purchase my first investment property, they were great. homemoneysavers.com
Residence loans are normally a longer term, up to 30 years, and a lower rate. So if you have a investment property that you have now decided to make you primary residence I would check with the bank and see if you could refi it. It will probably save you money. However you are not required to. As for doing it the other way primary residence to investment property? I know several people that will buy a home fit it up while living in it for the required 2 or 3 years and then turn it in to a rental home and buy another home

Tags: payment, favorable, longer, not, financing

Follow this dicussion..

Related Images:

Knowledge Base

Where can I find money to invest in stocks / mutual funds / real estate?

i am unemployed and looking for ways to invest in this volatile market. if you are unemployed, the last thing you should be spending money on is investing go get a job and you will earn money to invest. if you do not have a job, you can not save. (investment properties)

Property Investors?

i own a but to let worth 130, 000 with a intrest only morgage worth 95, 000, in 25 years the campany will want their money 95, 000, how do i raise the money if i do not want to sell? i want to have five buy to let in (financial advisors)

How I learn investing?

dummies.com / wileycda / dummies le / productcd - 0764554107.html real estate investing: dummies.com / wileycda / dummies le / productcd - 0764525654.html. visit the real estate site below for some very good books:. brokerforyou.com / san - diego - real - estate - sales.html. "the intelligent investor" - benjamin (home mortgage)

Related Images:

Knowledge Base: Investment Property

Where would I find Real Estate, Property Investors to invest in an investment in North Carolina Rental House?

i have been networking, posting, etc. endlessly. what and where is the best place to put my great real estate deals in front of property investors with their contact information listed? it can be from investors that invest nationwide here in the usa or locally in north carolina. thanks and (investment properties)

Have property investors destroyed the great Australian dream?

20 - 30 years ago the average australian home cost about 4 times the average income. according to published statistics that figure is now about 7 times. are large numbers small cashed - up property investors owning 1 - 8 investment rental properties driving up house prices beyond the reach (property investors)

What advice can people give on overseas property investments?

for example would you invest in a caribbean property that is not yet built, where the deposit is Â£1000 and the developer has no other properties up and running yet, though some are already built but not being used?. my best advise would be : - 1 be extremely weary. (property investments)

Is investing in property better than to invest in the stock exchange?

i am doing an essay at the moment and i would like to know whether ppl in general would place the life savings into property or on the stock exchange. if anyone has some advice. plz leave it here. thanx. in the market, property is too long term and risky (land investment)

I live in a council property but want to go into investing in properties as a business - can i still live here?

i would love to invest in property market for future investment, but fear losing my council property which i wish to remain living in whilst carrying out this new business. will i lose my council property if i take up this new venture?. im sorry but if you can invest (investment properties)

Related Images:

Knowledge Base: Investment Property

Tax implications of Investment Property Income to a minor?

my husband and i just bought an investment property that we intend to rent. we purchased the property for a 10 year old minor with the intention of us making the monthly mortgage payments and the child receiving the monthly rental income approx. 12k annually to put in a savings (investment property)

investment property?

i really want to buy a rental investment like duplex and i need some guidance: 1. should i form an llc to protect my potential lawsuit and purchase that rental property under that llc? can i avoid an llc due to fees / costs? 2. i am in ca and (investment property)

Where i a heloc or type of loan on investment properties?

where can i get a heloc or any type of mortgage on investment where the loan is primarily on the property, and not based on my credit score so that i can get for more then 15. b red flag alert! / b. first off, all residential loans are based (investment property)

Reinvesting captial gains an investment property property? How work?

is it true that if you use the capital from the sale of an investment property and put that towards another property that you will not be taxed on the capital gains via tax? how does this work exactly? and can you use the capital gains toward any type of (investment property)

I am wondering if owning a Real estate property rental a 20 yr period is a worthy investment?

i own a rental property. lived in it for 7 yrs. just completed a 1 yr renting cycle. wondering if it is worth to keep renting it out for the next 20 yrs uming i am breaking. over the long term it will always be a good investment. i would (investment property)