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zhangxin0987 · Joined: 04 May 2011 Posts: 1 1.32 Dollars($)

My friend relocated for a job and had to rent her house out. Is the house still her ”primary residence"?

chrisgummerson · Posted: Wed May 04, 2011 8:48 am Post subject:

No, it now is her rental. If she is renting a new home, that is her residence. If she took a loan in last few years, the lender requires that you live or occupy the residence for a set amount of time. Certain lenders will check on occupancy. If she moves back to the house, becomes her primary again.

Guest

Thanks for your reply, I really appreciate it!
She is considering to refinance her mortgage as her rate is adjustble right now. The house value is about 200,000 and the loan balace is ~118,000. She doesn't need cash out and just want to fix the rate. 15 year or 5/1 both are fine. Do you have any sugestions on rate and closing cost estimation?

Thanks in advance!

chrisgummerson · Posted: Wed May 04, 2011 9:37 am Post subject:

It depends on your state. Also, since she actually does not live at the property it would be a Non-Owner Occupied loan. Which just has a slightly higher rate than a owner occupied loan. In california, for a loan size of 120k, the third party fees would be: Title ~800, escrow ~1000, appraisal ~400, and prepaid interest, which is basically part of a mortgage payment that gets paid off during the closing. Finding the right title and escrow company can get your costs lower. Then if you go to a broker or loan company, they will have some fees as well. All our fees total 1040, which is underwriting, processing, documents and flood cert - for FHA loans. Rate, if she has 720-740+ credit, with verifiable income, She could get pre-approved for a non owner occupied in CA on a 120k loan is in the 4% range for 15yr and in the mid 3% range for 5yr arm.

Guest

Thanks again! It sounds good. Can I call you to get details?

chrisgummerson · Posted: Wed May 04, 2011 10:37 am Post subject:

Of course 714-367-5125 ext 2267

Chris Gummerson

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