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Profile picture for Shedelta

can we refinance a rental property to a lower interest rate without closing costs?

We are upside down in a condo we purchased as our first home. We owe 120K on it, and it's estimated value is 100K. Currently, the rate is 6.75% and the payment $990/month. We have renters in there now, but they are not staying too much longer and we don't live in town anymore (making it hard to rent again). The condo also carries a $300/month HOA payment. Desperately need to lower the payment without increasing the loan amount before we default on the payments.
  • November 12 2012 - US
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Answers (3)

Profile picture for kvcamarena
Please send me the lenders names/website I'm in the same boat. Thanks. Kvcamarena@yahoo.com
  • February 25
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[hotlink removed by Zillow moderator] shows the typical income property financing requirements. I know that a rental property can qualify for HARP if you have a Fannie Mae backed loan. This will help with the underwater factor. Although closing costs can be significant on non-owner-occupied properties, and I'm not sure if they can roll them into the loan. Definitely talk to a couple lenders in your area soon. The smaller banks and credit unions seem to have a bit more flexibility. 

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  • November 13 2012
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I would speak to a lender asap. They will be able to go over the details of your property and loan type and see if refinancing is an option. Its great that your are proactive in this and not waiting until you get in the hole. If you need information on a great lender, let me know!
  • November 12 2012
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