What matters with mortgages is whether you are using it as agreed on the note. It doesn’t matter if you split who holds each loan. If you aren’t living there r have rented it out, that could be a problem. Check first, or risk penalties.
Thank you for your feedback and opinions...this was more complicated than I thought, unfortunately :(
What would YOU do if this was your situation? Now, I think I just got confused. Refinance but maybe unable to rent it out in the future or keep original mortgage and can rent it out since notes allow after 3 years...
You're right, we're all in this together and trying to help and learn from one another and I really appreciated your time and comment.
thank you.
There are several questions I’d ask in addition to refinance questions. As I don’t know if you should rent out your house.
1. Do I want to be a landlord and why?
2. Do I want to be a hands on landlord, if not do the numbers work if I hire a property manager.
3. Do the numbers work as a rental on your current. I don’t mean can I rent it for the PITI, but also factoring in vacancies and Maintence. (Does it meet the 1% rule, property rents for at least 1% of the purchase price ie a 100k house rents for $1,000 a month).
4. Also you mentioned DR, you know he would be yelling at you for considering that you are considering buying a second home with a mortgage while still in other debt right? Especially when you don’t have a 3-6 month emergency fund. Where are you getting you down payment let alone affording a new roof on your “new rental”
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I appreciate your reply- to answer your question:
I always wanted to try. I Know the pros and cons and def will regret if I don’t take the risk. Basically, I’ll regret it if I don’t try something (one of those people :) ).
I don’t care about DR and this is the DON’T pay off your mortgage thread.
And I’m not sure how the assumption was made on me having no cash, emergency funds etc?...
Thanks