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After two years as a resdiential rate mortgage, can a bank increase the loan cost if the borrower co

  • January 03 2013 - US
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Answers (5)

Steve gave you the more techincal answer and he is correct

However the practical thing to ask how will your lender know you switched your residence to a investment?
  • January 03 2013
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You should read over your loan documents including the mortgage or deed of trust.  The standard Fannie Mae Deed of Trust prohibits renting the property for one year.  But your particular loan documents will have the answer. Sure, the language is boring, but the stakes are high enough to be worth your time. 
  • January 03 2013
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No

Your rate and closing costs are secured, you can swap your property to a rental and there is no change to your loan terms. However if you ever want to refinance that property you will be dealing with investment pricing
  • January 03 2013
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After two years as a resdiential rate mortgage, can a bank increase the loan cost if the borrower converts the property into a rental?
  • January 03 2013
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Hit Post Reply and finish your question.
  • January 03 2013
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