My husband wants to refinance with a 3 year prepay penalty loan?
Posted in Renting & Real Estate on 07/20/2009 12:23 pm by admin
stephanie5 asked:
We have a home that its rent is about half of the mortgage. My husband wants to get a loan with 3 year pre-pay penalty and take out some money as well. This way he wants to lower our monthly payments but at the same time, get the equity as cash. In 3 to 5 years if the housing market is still bad, he wants to let go of the loan and foreclose, and if the market is good, then he wants to sell. We are a little squeezed for money now and I think he is not thinking rashionally. Is this a good thing?? We have a great rate of 6% fixed now on the house, but we got a second mortgage on it that is making our payments a little high. What are the consequences of getting such a loan and should we just try and pay the high mortgage. Who knows what’s going to happen with home prices? This is a house worth 1.2 mil and we owe about 950 thous on it. Help me.
MILES
We have a home that its rent is about half of the mortgage. My husband wants to get a loan with 3 year pre-pay penalty and take out some money as well. This way he wants to lower our monthly payments but at the same time, get the equity as cash. In 3 to 5 years if the housing market is still bad, he wants to let go of the loan and foreclose, and if the market is good, then he wants to sell. We are a little squeezed for money now and I think he is not thinking rashionally. Is this a good thing?? We have a great rate of 6% fixed now on the house, but we got a second mortgage on it that is making our payments a little high. What are the consequences of getting such a loan and should we just try and pay the high mortgage. Who knows what’s going to happen with home prices? This is a house worth 1.2 mil and we owe about 950 thous on it. Help me.
MILES