Posted on: 23rd Dec, 2009 03:44 pm
i currently own a townhome. i bought it 2 years ago. it is a 30 yr, fixed rate on $130,000.
i have $42,000 in the bank and i am considering buying a house. hopefully this will be the last home i will ever buy.
my question is, should i refinance my townhome mortgage to make it profitable for me to rent out once i move into the house, assuming i find the right house and i get approved for the loan?
my plan is to take advantaqe of the housing market. i have a good credit score. i would rent out the house, assuming i buy one, because it would be easier to rent out, until i felt ready to move into it, which could be anywhere from 1-5 years.
just pondering,
joe
i have $42,000 in the bank and i am considering buying a house. hopefully this will be the last home i will ever buy.
my question is, should i refinance my townhome mortgage to make it profitable for me to rent out once i move into the house, assuming i find the right house and i get approved for the loan?
my plan is to take advantaqe of the housing market. i have a good credit score. i would rent out the house, assuming i buy one, because it would be easier to rent out, until i felt ready to move into it, which could be anywhere from 1-5 years.
just pondering,
joe
Hi joedarock,
I appreciate the fact that you've a good credit score. But, do you have equity in your town home? The town home should have equity in it in order to qualify for a refinance. If there is equity in the property, then you can go ahead with the refinance. As far as buying a new property is concerned, you can go ahead with it, provided you've a proper debt to income ratio, steady income and not much negative items on your credit report. Then, you may rent off the property.
I appreciate the fact that you've a good credit score. But, do you have equity in your town home? The town home should have equity in it in order to qualify for a refinance. If there is equity in the property, then you can go ahead with the refinance. As far as buying a new property is concerned, you can go ahead with it, provided you've a proper debt to income ratio, steady income and not much negative items on your credit report. Then, you may rent off the property.