Scottsdale Homes For Sale Or For Rent: Refinancing Your Mortgage

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It is possible for you to become a landlord if you choose to rent out your houses rather than have Scottsdale homes for sale. If you have to refinance to pull out cash or reduce the interest rate, you can do so before you rent it. Indeed, refinancing before renting is less costly and easier.

Refinancing

Refinancing the mortgage loan involves replacing your present loan with a new one. Typically, homeowners refinance when rates go down enough to justify the closing costs of the new loan. Lower interest rates can reduce the mortgage payment every month by a few hundred dollars but this depends on what your starting payment is and the rate difference. A number of homeowners refinance to replace a bad loan with a new loan or to get some cash to purchase one from the available Scottsdale homes for sale or begin a small business.

Terms of the Loan

If you choose to refinance as a homeowner rather than a landlord, you will often have a higher allowable loan-to-value and lower interest rates. For instance, you are likely to need to have an LTV or 80% for a rental property; however, could have up to an LTV of 95% on your personal residence. It is possible for the loan agreements to state that you make use of the house as your main residence and want to continue to own it and live in it. Whether you stay in the home for 3 more years or months, you can meet the condition for occupancy loan by living in the home at closing as you sign the papers.

Special Programs s an Exception

Refinancing under a special government program means that your loan papers or trust deed is likely to say that you need to stay in the house so the loan will remain in effect. Although this is quite rate, it still happens. For instance, in lieu of a traditional down payment, a number of special loan programs offer you with a loan of zero percent for a percentage of the value of the house. Over a period of five to ten months, the lending partner or lender forgives a part of such zero percent loans every year until the balance of the loan equals zero. Typically, these will not result in the loan being called in case you relocate; however, will require you to pay the remaining zero percent loan balance back if you are not the main occupant anymore.

Mortgage Broker

You can choose to contact a mortgage broker rather than a direct lender. A broker serves as an intermediary and is likely to act favorably for you than a direct lender. Choosing to directly ask your lender could send a red flag up that you want to move right away. However, this takes place rarely when asking similar question of a broker. Also, such broker can be helpful in reviewing any loan documents to make sure that there are no hidden problems which could cause issues for you later. Whether you are selling Scottsdale homes for sale or renting them out, you will need the services of mortgage broker or real estate agent.

For more SCOTTSDALE HOMES FOR SALE, please contact top 1% Arizona realtor Jen Wehner today at 480-748-6925 or Jennifer@JenniferWehner.com.