Golden sunsets
Thinks s/he gets paid by the post
- Joined
- Jun 3, 2013
- Messages
- 2,524
Question for those who have rental real estate portfolios. If a person obtains a mortgage to purchase a primary residence, lives in the home for a few years and then rents that residence(the home is a condo), while obtaining another mortgage to purchase and move into a new primary residence, will that person be able to get the lower primary mortgage rate on the new mortgage, while retaining the preferential primary mortgage rate on the first home?
DS is contemplating doing this, with an eye to eventually establishing a side revenue stream, as the first home is paid off. It is in a desirable appreciating area with rising rental rates and will nearly cash flow from the outset. I wondered if from a credit worthiness perspective, the new bank would object to his having 2 primary mortgage rates, or if the first lendor would claim that the original purpose of the loan is no longer in effect. Would he even have to notify the first lender of the new status?
DS is contemplating doing this, with an eye to eventually establishing a side revenue stream, as the first home is paid off. It is in a desirable appreciating area with rising rental rates and will nearly cash flow from the outset. I wondered if from a credit worthiness perspective, the new bank would object to his having 2 primary mortgage rates, or if the first lendor would claim that the original purpose of the loan is no longer in effect. Would he even have to notify the first lender of the new status?