03-29-2005, 05:32 AM #1chinups Guest
Need financial help..Anyone know mortgages??
My mother and I currently own a home that I am thinking about doing a refi on so she can move to a retirement type society, she will be buying the house outright and won't have a mortgage. The scenario is this. We own a home that the existing mortgage is 130k, there is a equity loan out on it for 50k with 22k being the remaining available balance. Now what I was thinking was renting out the home for as long as there is positive cash flow coming out of it and possibly sell over the next 1-5 yrs depending on how the market goes, rental could be somewhere around 1200-1500 so covering the mortgage wouldn’t' be a issue but here is the scenario. I want to refi add back in the equity to the mortgage and make a steady interest only payment so that the mortgage is covered. I am thinking about doing a 12-mta loan so that the rental pays mortgage and then some, worse case scenario is that the rates go up and we sell. What do you think about this. I hope I explained well. Thank you for your time and thoughts.
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