Does my mortgage company need to know (do I have to tell them) that after four years as my primary residence I am planning on renting it out?
2007-05-23 13:47:52 · 7 answers · asked by Johnny H 1 in Business & Finance ➔ Renting & Real Estate
Possibly, depending on any language contained in your mortgage contract. However, in reality, lenders tend to not care about such conversions, as long as the mortgage payments continue in a timely fashion.
2007-05-23 13:52:03 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
Mortgage company will not care, as long as they get payments.
If you live in a community with homeowners association, some have rules regarding renting (and some even do not allow to rent at all.)
As for insurance, if you add renters to your insurance, your premium will go up substantially. It's better to have the renters carry their own renters insurance and for you to increase liability portion of your insurance (if renters or their guest get hurt on your property, they'll go after you.)
2007-05-23 20:58:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Just make sure that you continue carrying homeowners insurance, so that your (and their) investment is protected. Upon renting you'll want to change to a dwelling policy, which is cheaper than the regular policy.
Consider requiring in your rental contract that the tenant carries rental insurance.
2007-05-23 20:57:06 · answer #3 · answered by Venita Peyton 6 · 0⤊ 0⤋
It would be truly rare if your original note contained a clause that said you couldn't rent your home. The only exception is if you purchased as part of an government program for 1st time buyers.
2007-05-23 20:56:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Normally no. Unless there is some really unusual requirements in your mortgage they don't care as long as your payments remain on time.
2007-05-23 20:56:21 · answer #5 · answered by ttpawpaw 7 · 0⤊ 0⤋
No- all they are interested in is getting their monthly mortgage payment. It does not matter to them where it comes from!
2007-05-23 20:51:41 · answer #6 · answered by FLmom3 6 · 0⤊ 0⤋
no i did that it was alright.
2007-05-23 20:55:30 · answer #7 · answered by ladymagictn 1 · 0⤊ 0⤋