 Financing (by Sangam Dash [TX]) Sep 26, 2011 1:27 PM
 Financing (by Pattyk [MO]) Sep 26, 2011 2:17 PM
Financing (by Sangam Dash [TX]) Sep 26, 2011 2:32 PM
Financing (by Smokowna [MD]) Sep 26, 2011 3:23 PM
Financing (by p m h [TX]) Sep 26, 2011 3:44 PM
Financing (by Chris [CA]) Sep 26, 2011 5:16 PM
Financing (by Suzanne [TX]) Sep 26, 2011 5:21 PM
Financing (by Sangam Dash [TX]) Posted on: Sep 26, 2011 1:27 PM
Message:
Hi
I have a house in San Antonio, TX, where I was living for a year. I got a 15 year 4.25 loan on that house. Now I owe 175, 000 on that house. I dont live in the house as I moved to a different city. The house is renting now, for 1955 a month before expenses. I want to refinance this house. My question is which type of loan should I take in this market conditions:
30/20/15 year fixed OR
7/1 or 5/1 ARM?
Thanks
Sangam Dash
--173.162.xxx.xx |
Financing (by Pattyk [MO]) Posted on: Sep 26, 2011 2:17 PM
Message:
Any kind you can get! Tough market. What's wrong with the loan you currently have? --174.159.xx.xxx |
Financing (by Sangam Dash [TX]) Posted on: Sep 26, 2011 2:32 PM
Message:
I can get all of the loans, above as I had mentioned, usually is it better for an rental income property to go for a lower rate longer term loan or a loan like ARM which has very low rate at this time, so that I can make more on the cash flow?
With the current loan I have, I am negative on the income. --173.162.xxx.xx |
Financing (by Smokowna [MD]) Posted on: Sep 26, 2011 3:23 PM
Message:
I would cross the arms off the list completely.
--108.18.xxx.xxx |
Financing (by p m h [TX]) Posted on: Sep 26, 2011 3:44 PM
Message:
depends what you want in life.
cash flow no, no equity
some cash flow now and some equity
more equity later and more cash flow later
rates are so low now..refi to 30 year fixed --97.94.xxx.xx |
Financing (by Chris [CA]) Posted on: Sep 26, 2011 5:16 PM
Message:
Well, I would recommend the fixed rate and the longest term you can get. Markets swing like a big pendulum of a grandfather's clock. Dream on if you think there won't be an avalanche of inflation complete with higher interest rates! ARM - haven't you learned anything from the present crisis? --182.53.xxx.xxx |
Financing (by Suzanne [TX]) Posted on: Sep 26, 2011 5:21 PM
Message:
I doubt you could get a significantly lower rate on a fixed mortgage that would be worth the refi costs. I would worry about an ARM too, because you just know that suddenly interest rates are going to start jumping, and hitting all kinds of horrible spikes, and it will be tricky to refinance then. We just don't know if that is going to happen in 2 years, in 5 years, in 7...
Betting on longer is a huge gamble, in fact I think 5 is realistic. Whether you should refinance depends on what your cash flow is now and whether you can realistically hold a property in a different city where you can't look after it as well.
I prefer investing for the long haul even when it means my property is far away. I just make sure to get out there once a year and to get the very best property manager I can get. I can't wait to get those mortgages paid down. Who wants to owe a lot of money when it's not cheap to borrow? --168.7.xxx.xx |
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