Home Equity Loans – second mortgage

urban_rednek asked:


I am getting ready to re-fi my home and want to know how i need to classify it for my mortgage app. It’s the only property i own, but last year i had to take a job out of state (economic reasons) so i am currently renting it. Can i still consider it my primary residence or would it be considered an investment property or a second home?

How much more are interest rates for an investment property given plenty of equity, great FICO and steady income?

MICHAEL

Michael K asked:


Last year, I was compelled to agree to an interest only equity home loan. I paid cash for my home 2 years prior, and owned the home without mortgage of any type. Now, I am paying off an “interest only” loan payment for 30 or more years, with out even touching any of the principle.
I have been getting dozens of calls from “RE-FI” who are dying to jump on board, but for the life of me, can’t see where they make the money on such a poor loan structure.
I have no income but a small investment dividend, coming to an end and lots of equity in property, both personal and real.
ReFi companies offer me lower monthly payments and other services to get me on board. Are they just happy to take on the interest only account? Or, is there something else I don’t know about.

STEVIE