2007-11-02 11:42:54 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The first question should be whether or not you will be able to get a decent loan on a rental property. The best loans available are for a primary residence. Loans on rental properties are riskier to the bank, and therefore have worse terms.
If you got the original loan when you lived in the house, you may just want to keep it and not do the refi.
Generally speaking, you will need PMI for a loan of more than 80% of the property's value. Check the loan terms. Keep in mind that houses aren't appraising for nearly as high as they did 2 years ago.
2007-11-02 11:51:13 · answer #1 · answered by JJ 4 · 0⤊ 0⤋
PMI-Private mortgage insurance, is aquired in case of having one loan on your property which exceeds 85% of the loan to value. To avoid PMI, most people/corporations aquire two loans, 80/20,90/10 etc.
Refi or cash-out on your rental property dealing with one loan, the bank will require you to buy pmi.
Get two loans, and refi the one that has the highest interest rate, and this way you will avoid getting the PMI>
2007-11-02 18:54:05 · answer #2 · answered by ogantom 2 · 0⤊ 0⤋
PMI is only required on loans to be sold --or held as salable -- on the secondary market. So if you can find a lender that portfolio's it's loans, you probably woudn't have to pay mortgage insurance.
By the way, the ltv is 80% not 85%.
2007-11-02 19:56:44 · answer #3 · answered by Debdeb 7 · 0⤊ 0⤋
if the LTV is over 80% then yes
some lenders require it over 75%
2007-11-04 13:53:57 · answer #4 · answered by Anonymous · 0⤊ 0⤋