Refinancing Rental Properties

by Helpless In Kentucky

Hi Kate, My husband and I need advice on refinancing rental properties. It all began when we purchased a home in 2001 with a subprime mortgage lender. In order to get out of that loan we went with another broker, unaware of what other options were available in 2004.

This was supposed to be a fixed rate loan and we found out at closing it was another arm.

We purchased a new home in 2005 using the same broker who is no longer to be found. He assured us our old home would sell before the arm adjustment. We have been renting out the old home since 2005 and the rate and payment has almost doubled since.

Now that average mortgage rates are lower we have payment relief around $300 per month but we are concerned about rates going up again. The investor is not Fannie Mae or Freddie Mac so the program Hope For Homeowners is not much help.

We cannot find anyone willing to refinance a non owner occupied at probably now over 100% LTV. (Now that we realize the appraisal in 2004 was seriously inflated.)

Do you know of any options to get out of this upside down loan? We just want to make our monthly payments with a rate lower than 11%. Thanks!

Kate Answers: Refinancing Rental Properties

Dear Helpless In Kentucky,

Thank you for contacting with questions about refinancing rental properties. Please go to
Real Estate Investor Loans where I have answered your letter.

I hope you will find these solutions helpful. Please feel free to come back to my website again in the future with more questions. Of course, you can invite your friends to comment on this page or create one of their own.

Best Wishes,

Ask Kate how to get the best mortgage rates
Ask Kate

P.S. Go to my Best Mortgage Rate Blog, an entertaining source of mortgage information. Subscribe now to the RSS feed.

Learn More About Your Dream Team

How to Buy a House Part 1 Meet your real estate agent and save yourself heartache and headache.

How to Buy a House Part 2 Meet your mortgage lender - Expect more than quoting the lowest rate or taking an application.

Check out List of Mortgage Companies, a local lender directory.

How to Get a Mortgage Part 3 Meet your home inspector and avoid buying a money pit.

How to Get a Mortgage Part 4 Meet your real estate appraiser - Does an appraisal assures you of a good deal?

How to Get a Mortgage Part 5 Meet your title insurance companies for coverage resulting in peace of mind.

How to Get a Mortgage Part 6 Meet your homeowners insurance agent because there is more to it than the cheapest quote.

How to Get a Mortgage Part 7 Meet your escrow and closing disclosure form, the guardian of your real estate transactions.

Title, Abstract Services and Escrow Agents, a mortgage service provider directory.

How to Buy a House Questions and Answers II.

How to Buy a House Questions and Answers I.

Return from Refinancing Rental Properties to Get Your Best Mortgage Rate

Click here to add a comment.

You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

Recent Articles

  1. Kate's Mortgage Rate Report August 11: Rates Bouncing Like a Ping Pong Ball

    Aug 11, 16 10:49 AM

    Kate's mortgage rate report for the week ending August 11, 2016: Rates Bouncing Like a Ping Pong Ball
    Mortgage interest rates have been bouncing like a ping pong ball: After last Friday's strong job report began pushing up mortgage rates, the market is now hinting at a reversal, with the 30-year hover…

    Read more

  2. Ask Kate how to avoid unauthorized mortgage rate extension fees

    Aug 11, 16 10:18 AM

    Ask Kate how to avoid unauthorized mortgage rate extension fees
    Ask Kate how to avoid unauthorized mortgage rate extension fees:

    After locking in her rate, the bank sent a Texan homeowner, Laura, notification of several thousand in fees that she must pay in order…

    Read more