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urgent, pls help!!!

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xmljar Joined: 08 Apr 2007 Posts: 14 9.72 Dollars($)	Posted: Tue Apr 24, 2007 7:22 am    Post subject: urgent, pls help!!! Like 0 Dislike 0 Hi, I am looking to buy my first home and also looking at rental properties for investment. I was going to buy my home first before I buy a rental. However, a good rental deal came first. If I tell the mortgage company this is rental, will that give me a worse APR? Is it better that I move into it until I find my desired home? Will I have a probably obtaining a second mortgage after the mortgage for the rental? pls help
Kirstie Guest	Posted: Tue Apr 24, 2007 10:40 am    Post subject: Like 0 Dislike 0 Quote: If I tell the mortgage company this is rental, will that give me a worse APR? Mortgage for rental properties do have different rates than what are quoted for residential properties. If you take a mortgage specifically stating that the property will be used for rental purposes then rates will be bit higher than what they are for residential loans.
miller_st Joined: 17 Jan 2007 Posts: 918 168.95 Dollars($)	Posted: Tue Apr 24, 2007 11:10 am    Post subject: Like 0 Dislike 0 "Hi, I am looking to buy my first home and also looking at rental properties for investment. I was going to buy my home first before I buy a rental. However, a good rental deal came first. If I tell the mortgage company this is rental, will that give me a worse APR? Is it better that I move into it until I find my desired home? Will I have a probably obtaining a second mortgage after the mortgage for the rental? pls help" If you have not found a suitable home that you want to purchase then you should move into this house. To get a second mortgage for the new house will not be difficult but the rates can be higher as then you will already have a mortgage burden of this rental property. Miller
Samantha Community Mentor Joined: 16 Sep 2005 Posts: 1609 Location: MASSACHUSETTS 150.97 Dollars($)	Posted: Tue Apr 24, 2007 11:22 pm    Post subject: RE: APR too high for new home bought after rental? Like 0 Dislike 0 Hi Xmljar, Welcome to the forum. I guess you will be buying a property first to rent it out. Well, in that case, the lender will be offering you slightly higher rate as it is an investment property and not owner-occupied. The APR may not be the worst of its kind but then it will be higher than if you have taken out a loan for the purchase of your primary home. You can consider moving into the rental until and unless you can find a home of your own. Now, when you purchase a home of your own, you can take a first mortgage itself against the home you will be buying. Second mortgage term is used to indicate a loan on a property where there is already a first loan. If you have bought a home loan against the rental and you need another loan for the new home, the loan on the new home does not become a second mortgage. A second mortgage implies a loan subordinate to another loan taken out against the property prior to the former. Hope this helps... God bless you. Samantha. _________________ Know how to compare lenders with mortgage booklet
Kavinoky Guest	Posted: Sat Apr 28, 2007 12:13 pm    Post subject: Like 0 Dislike 0 Quote: Is it better that I move into it until I find my desired home? Until you get the home you want to purchase, it will be better to use this one and when you do find the home, convert this one in to a rental.

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