Unique situation. Refinance and cash out to down for a new home?
lmatrixl asked:
I own a 2-family home worth 370K. I still owe 88K with 12 years left on a 15 year loan. I owe a family member 200K in loan. I need to pay the family member back now. Can I (should I) refinance for the value of the home and pay off the family member with it? Basically, I’m moving from a non interest family loan to a mortgage. I know that, financially,it’s a disastrous move, but the situation is what it is. Also, if I wanted to buy a new home and put this one up for rent…would it be wise to refinance for, say, 320K (200K goes to the family member, 88K for the remaining mortgage, and 32K cash out to down for the new home)? So in the end I would have one two-family home up for rent and a home I will reside in. I’m hoping the rent from the two family home will cover the new 320K 30-year mortgage and my income 126K/year (gross) will cover my primary home’s mortgage. Which leads me to another question, at that income level, how much home can I afford? Thanks to any advice anyone can give!
MARCELINO
I own a 2-family home worth 370K. I still owe 88K with 12 years left on a 15 year loan. I owe a family member 200K in loan. I need to pay the family member back now. Can I (should I) refinance for the value of the home and pay off the family member with it? Basically, I’m moving from a non interest family loan to a mortgage. I know that, financially,it’s a disastrous move, but the situation is what it is. Also, if I wanted to buy a new home and put this one up for rent…would it be wise to refinance for, say, 320K (200K goes to the family member, 88K for the remaining mortgage, and 32K cash out to down for the new home)? So in the end I would have one two-family home up for rent and a home I will reside in. I’m hoping the rent from the two family home will cover the new 320K 30-year mortgage and my income 126K/year (gross) will cover my primary home’s mortgage. Which leads me to another question, at that income level, how much home can I afford? Thanks to any advice anyone can give!
MARCELINO
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4 Responses to “Unique situation. Refinance and cash out to down for a new home?”
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LIONEL
$320 PP
$32K -down 10%
$288 @ 6.5% PITI= apr. $1700
You will have to rent each unit for about $850 minimun. Can you get a rent rate of $850 per month for each unit?
As far as for what you can afford. Based only on income level you can afford a house $380,415 purchase price.
got to:http://www.bloomberg.com/invest/calculators/qualifier.html
SIMON
Marty???? the best in the business…. are you kiddin me? STAY CLEAR……
ROY
I think you have a good plan and need to get a good loan officer working for you. I like the idea that you can write off more mortgage interest against your taxes as well. I recommend Smart Choice Mortgage. They do business in most states and are your best opportunity for someone to say yes. ADDITIONALLY, IF YOUR CREDIT IS SUSPECT, THEY SOMETIMES FRONT THE MONEY TO GET YOU INTO A CREDIT RESTORATION PROGRAM SO THAT YOU CAN QUALIFY FOR A LOAN. Check out the free evaluation form at the source website and a Smart Choice loan officer will contact you within 24 hours. Good luck.
ROY
As a mortgage broker, I have several options that may interest you. I am approved with 180 lenders nationwide!!
There are a few more pieces of information that I need from you in order to place you in the best possible program! E-mail me with your scenario as well as your phone number and you and I can decide which route is best to take! I look forward to hearing from you!