How do you refinance your properties? Owner Occupied?

Hi,

I have a few rental properties and I was wondering how you guys
refinance them? Do you claim them as owner occupied?

Regards...

Re: How do you refinance your properties? Owner Occupied?

On 11 Mar 2006 20:55:22 -0800, wrote:

>Hi,
>
>I have a few rental properties and I was wondering how you guys
>refinance them? Do you claim them as owner occupied?
>
>Regards...

Only if they are going to be owner occupied, otherwise it would be
mortgage fraud.

Re: How do you refinance your properties? Owner Occupied?

wrote:
> On 11 Mar 2006 20:55:22 -0800, wrote:
>
> >Hi,
> >
> >I have a few rental properties and I was wondering how you guys
> >refinance them? Do you claim them as owner occupied?
> >
> >Regards...
>
> Only if they are going to be owner occupied, otherwise it would be
> mortgage fraud.

I understand, but people who own like 10 properties tell me thats what
they do.

Do they have .5 percent 40 yr ARMS for rental properties? I want to pay
as little as possible every month on my properties. What do the rest of
you guys do? What kind of loans or refinancing techniques do you use?

Thanks in advance!

Re: How do you refinance your properties? Owner Occupied?

<> wrote in message
news:
> Hi,
>
> I have a few rental properties and I was wondering how you guys
> refinance them? Do you claim them as owner occupied?
>
> Regards...

I think you will find that most lenders are flexible about the
"owner-occupied" label. Some lenders will tell you that you have to pay a
higher interest rate for rental property but will back down and give you the
lower "owner-occupied" rate if you show signs of going elsewhere. It helps
if you have a sizeable down payment and good credit, so that the lender
wants your business.

Some people will actually move into a new house or condo and stay a few
months so that it is indeed "owner-occupied" for a while before turning it
into a rental property. There is nothing illegal about this, at least not
in areas where I have done business. The owner-occupied thing is strictly
something dreamed up by lenders for their own protection. It is negotiable.

Re: How do you refinance your properties? Owner Occupied?

<> wrote in message
news:
>
> Do they have .5 percent 40 yr ARMS for rental properties? I want to pay
> as little as possible every month on my properties. What do the rest of
> you guys do? What kind of loans or refinancing techniques do you use?

Some things to keep in mind: Suppose you have a choice between a 6%
interest-only line of credit and an 8% 30-year fixed rate mortgage. Suppose
also that you plan to hold the property for a few years and then sell it. In
the early years of a fixed-rate mortgage your payment goes mostly to
interest anyway, that is, it is hardly distinguishable from an
"interest-only" loan. So why would you worry about the tiny bit of equity
the fixed-rate payments would build up in a few years, and why would you pay
8% interest when you can pay 6%?