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Answers (3)
Best Answer
- Brian Goetz, "bri_gets"
- Contributions:295
Although the rates seem high on both loans compared to today's rates, becuase the loan amounts are so low, you may not save very much money if you were to refi either property.
If you feel that the balances are too high, you may want to consider a couple of options...
1) refi into 15 year loans to get a much lower rate and pay off the loans at a faster pace.
2) do a cash out refi on your rental property to pay down the balance of your primary residence so that you do not have to pay mortgage insurance anymore.
3) Do not refi either loan, but pay more than your minimum payment to pay off those loans at a faster pace.
I would start off by calling a mortgage company to get a rate quote and then talking to your CPA to ask him if it is worth while to refi.
If you feel that the balances are too high, you may want to consider a couple of options...
1) refi into 15 year loans to get a much lower rate and pay off the loans at a faster pace.
2) do a cash out refi on your rental property to pay down the balance of your primary residence so that you do not have to pay mortgage insurance anymore.
3) Do not refi either loan, but pay more than your minimum payment to pay off those loans at a faster pace.
I would start off by calling a mortgage company to get a rate quote and then talking to your CPA to ask him if it is worth while to refi.
refying the smaller loan might not make much sense... If you save 1% of interest on $55K that is only $550 the first year, less each year after that... add in title charges, an appraisal, loan origination fees, recording fees etc, and it would take a few years to break even. Try calling each of the lenders you are with, and see if either one can do a streamline refi without charges.
Another possible plan, if you have extra money or income, would be to aggressively pay off the smaller loan, so that in a couple of years you didn't owe anything on it at all.
Another possible plan, if you have extra money or income, would be to aggressively pay off the smaller loan, so that in a couple of years you didn't owe anything on it at all.
- jeffandnora
- Contributions:2
Thanks for your help on this. Finding the best route has forever been very difficult. I appreciate your input.
What is the best way to handle two mortgages? One is my home, and the other is a rental.
We have renters in our previous house. It has 21 years remaining on the 30 year mortgage. The loan amount was originally $94,500 (purchased in November of 2002). The remaining loan amount is $55,684.92. The interest rate on this loan is 6.5%. Current house payment is 557.73 including insurance and no pmi. It will go up when we lose the homeowner's exemption at the beginning of 2012.
What is the most advantageous thing to do with these loans? Today, the loan amount on both houses seems high. What can I do?
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