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,


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

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. Lock Mortgage Rates - How To Avoid Hidden Fees

    Aug 06, 18 11:58 AM

    If you lock mortgage rates over the phone, how do you protect against excessive points and hidden closing costs? Learn what to do when your lock is threatened.

    Read More

  2. Finding Low Down Payment Mortgage Financing

    Aug 06, 18 11:53 AM

    Getting a low down payment mortgage: Learn the first two steps to financing niche properties in resort areas. Tip: It's not about timing the real estate market!

    Read More

  3. Ten Best Kept Secrets to Low Mortgage Payments

    Aug 06, 18 11:45 AM

    Ask Kate's secrets to low mortgage payments help homeowners understand industry lingo related to refinancing. Learn how to get your best mortgage rate!

    Read More