Refinance existing home, rent it out, and buy a new home?I currently have a 7/1 ARM loan on my existing single family townhouse. I have about 80,000 in equity in the home. I do not wish to sell this home now due to the current state of the market. However, I do want to buy a new home at this time, since prices and mortgage rates are so low. My plan is to rent out my current home. By doing so, I would actually be making a profit on my exising home of a few hundred dollars a month, while waiting for the market to rebound. My question is whether I can get a new mortgage to buy a new home, if I can show a signed lease agreement on my current home? I don't have a great deal of money for another down payment, but I do have that 80,000 in equity in my current home. Also, I was thinking of re-financing the current home's loan, since it was a 7/1 ARM. I have about 3-4 more years of the 7 year period. Can you please help me with my options here? My credit is almost 800.September 10 2010 - Columbia00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.