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Question need refi and purchase advise

considering putting between 45-70k on my condo on my upside down mortgage to get rid of pmi and then later to refi the lower balance and get renters in there (my loan bal is 220k, neighbors was appraised at 220k recently also)  and then putting 100k on a new home for my growing family to get a low mortgage. I can get profit a little rent towards my new mortgage. Just want to be smart about this with the old condo. What do you think/any advice?
  • October 11 2012 - US
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Answers (1)

What is your market rent? Paying 45-70k will buy you 2-300 less on your payment. What if you paid the difference from the rental amount and mortgage payment? Let's say it is a $300 per month or $3600 per year difference . It would take 15 to 30 years to add up to your buying down 45-70k buydown amount. By that time your PMI should be ready to come off. What if you made one or two extra payments a year and knocked down your principal? Would the refi regain your liquidity? I would seek the advice of an accountant because your condo would then become investment property with tax benefits and write offs.
  • October 15 2012
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