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Amy Said:

Will mortgage rates drop anytime soon? I am about to refi an investment property?

We Answered:

I have read that the Fed is worried about inflation and is reluctant to push rates down despite the current recession and credit crisis. They may go a little lower, but it won't be much. At these levels, definitely do a fixed rate. Rates will likely climb back up in a year or so.

Make sure the lender you choose has the money to fund! Ask to see their balance sheet. A lot of lenders may promise great rates, but they are sitting on all this foreclosed real estate that they cannot sell, so they have no cash to fund new loans. That is why they are in so much trouble.

That's what I know about it.

Felix Said:

Paid off investment home. Can I take a 1st mortgage on that property or must I go with a home equity loan?

We Answered:

You'd want a cashout refinance, and then you'd take 100% of the loan proceeds, minus closing costs. Fixed mortgages have better rates than HELOCs, so a regular mortgage is the way to go.

Kirk Said:

What is a mortgage rate for an investment property with 25% down payment?

We Answered:

Get yourself a realtor's blue book; Its a realtor's handbook

Lisa Said:

Are mortgage rates usually higher on investment properties?

We Answered:

Yes it is. Commercial loans can be even higher.

7.5% doesn't sound too high, good luck on your venture.

Lewis Said:

What happens if i de-fault on mortgage payments for an investment property.?

We Answered:

The remedies available to the mortgagee are as follows
- to attorn the rental income
- to proceed with foreclosure or exercise their Power of Sale right as stated in the mortgage document
- to recover any shortfall resulting from a deficiency from you.

In order to speed up the process, you can offer to deliver a quit claim deed and hope that the deficiency is minimal.

Joseph Said:

Can you buy investment property using a first time home buyer type mortgage?

We Answered:

No. An investment mortgage is regular. If it is not owner occupied it is an investment, pretty simple to understand.