Need some help evaluating this property that I currently own as my non primary residence and currently is being rented.
Market Value: $55000
Original Purchase price: $80000 (2008)
Original Mortgage Amount: $80000
Interest Rate: 6.25%
Mortgage Term: 30 Years
Term remaining: 22 Years
Amount remaining on mortgage: $65000
Gross Rents: $850
Principal and Interest (the P&I of your PITI - should match with the above info): $490.05 ($145.69 Principal and $344.36 Interest)
Taxes and Insurance (the T&I of your PITI): $339.95
HOA costs: $0
Deferred maintenance notes:
Anything else special or unique in regards to the numbers of the property (not the property itself; things such as city assessments, back taxes, special costs due to unique features of the property, etc. etc.): Was purchased using the 2008 first time home owners tax loan of $8000. Unlike the 2009 one it was not forgiven. Currently have $4500 left that would be due this year. Also, it is considered a investment property now, so will need to be 80% LTV to refinance. Could take money out of my 401K and do a streamline VA Refinance on my current house to completely pay it off potentially.
Question: What do I do? Should I refinance at 4.5% (roughly without points for $2k) but only if it appraises for enough? Credit is a 789. Is it worthwhile to just pay it off and continue to rent it? Should I just sell it for less than $55K and take the loss? Your advice is appreciated.
Edit: Could throw an additional 1k each month or so to the mortgage if needed.