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Replies (7)
- Clay Branch, "Georgia Loans"
- Contributions:7835
Sure, you can do that. What is the balance of the loan, estimated value of the free and clear home, which one is your primary residence, and what is the other property used for ( 2nd home or rental ) ?
- dandelos
- Contributions:23
Clay:
The first property is currently leased out, and I live in the second.
The loan balance on the first is roughly $300k, and a very rough estimated value of the second is about $700k.
The first property is currently leased out, and I live in the second.
The loan balance on the first is roughly $300k, and a very rough estimated value of the second is about $700k.
- Clay Branch, "Georgia Loans"
- Contributions:7835
Sounds good, the sooner you do it the sooner you stop paying 6%. :)
dandelos, how long have you owned the free and clear home?
dandelos, how long have you owned the free and clear home?
- dandelos
- Contributions:23
Clay -- Less than a year. How would that duration factor in here?
- Clay Branch, "Georgia Loans"
- Contributions:7835
I do not remember if it's 6 months or 1 year, have to look it up. Maybe someone else will chime in and answer that. Did you pay cash or did you inherit?
- Clay Branch, "Georgia Loans"
- Contributions:7835
looks like 6 months seasoning in if inherited, no seasoning if you bought and paid 100% with cash.
- dandelos
- Contributions:23
Thanks Clay -- the latter would apply in my case.
Feasible idea to lower interest rate?
The first one is underwater partly because of the market, but also because of a pending lawsuit that the HOA has against the developer. Because it's value is currently at about 50% of what I originally paid for it, I have not been able to refinance it to a lower interest rate.
My question is, would I be able to take out a mortgage on my 2nd property (presumably at a much lower rate than 6%), and use the funds to payoff the mortgage from the 1st property? And even if I could would such a course of action be financially feasible?
What would the pros, cons, and potential pitfalls be?
Thanks in advance!
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