If I price the lease to cover the mortgage, taxes, and insurance, I'm afraid it will be too high and scare off prospects
2007-03-03 15:25:14 · 4 answers · asked by lilacpearls 1 in Business & Finance ➔ Renting & Real Estate
It isnt the lenders responsibility to insure that you can rent their collatteral at a break even or profitable amount per month. Calling them to ask might cause a recall on your "Owner Occupied loan" Ask yourself this, Can the lender call me when we return from a year and ask us to pay a non owner occupied interest rate ? You are of course free to ask them, but the potential negative aspects far outweigh the remotely possible benefits. Lenders know life happens and really just want timely payment as agreed but I wouldnt recommend giving them fuel for a potentially dangerous situation. Ask a fair market rent on a 1 year lease term with a moderate sized deposit. The renters might not make your total payments necessary but for the very small difference you will be gaining equity just the same. Plus writing off the 1 year trip / relo expenses if its a business trip that your leaving on. Ask a tax advisor or financial planner for their best advice regarding the real costs you are about to face. Most answerers here at yahoo will either want to list your house for you, or help refinance it. Neither is beneficial to you, by minimizing the negative cash flow you will be just fine. Too low of a rent for the property type will attract a bad renter so set a fair amount and learn to live within those means for 1 year. The lesson gained will be beneficial to you for life.
2007-03-03 17:03:48 · answer #1 · answered by Myron 4 · 3⤊ 0⤋
You will have to rewrite the loan. In other words, you are looking to refinance. This could change the entire loan. If you can put the loan on a longer term, say 40 or 50 years, it would lower the payments. If you have improved as a borrower, you may be able to get a better deal, also if the value of the house as appreciated, and your original loan size has gone down, this will help as it will be less of a risk to use a lower loan size in relation to the value of the home.
2007-03-03 16:16:22 · answer #2 · answered by 1235 4 · 0⤊ 1⤋
If you are financed with a local bank, it is worth asking. If you are witha lender that sold your note, probably not. However, they may refiance you to meet the better payment. IF they do this, be tough and dont let them hit you with too many fees.
Lenders typically dont do this.
Good Luck
2007-03-03 15:32:07 · answer #3 · answered by batwanda 4 · 0⤊ 0⤋
If mortgage company sees you no longer there, it may want up front payment in full.
2007-03-03 15:28:40 · answer #4 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋