Quote:
Originally Posted by Steve Viegas
Don't forget about the term. Your monthly payment may go down, but each time you do this you may be adding term. i.e. if you are 5 years into a 30 year mortgage, and you re-fi another 30 year mortgage, you just added 5 years to your payment.
I would suggest when you re-fi, make the term shorter than you currently have left on your mortgage.
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Maybe. If you would stay living there, then yes. But to rent it out? Why bother? Believe me, you will have vacancies and repairs to deal with. And a shorter mortgage term will mean higher payments. Those payments really sting when you have no rent coming in. And they count in your debt/income ratios when applying for other loans. I'm assuming there's no issue there for you. But keep it in mind. I don't care about the term of my mortgage on my rental. I know I won't keep it a day longer than I have to. Might as well be a 100 yr. amortization. I'll never live there again and don't care about paying it off.