Advice on refinancing second home

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READER QUESTION

What time is best for me to refinance my second home?

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Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

Thanks for the question. It sounds like your current mortgage balance on your second home is around $195K and the value is (at least from the lenders perspective) $225K. You'd need at least 15% equity on the home BEFORE you started taking out cash, so I don't think that's a viable solution for you at this point. You've got the right strategy - rent out the house (try to at least break even on your monthly cash flow, i.e. rent received = mortgage payment paid) and hold on to it until values come back in your area. It sounds like you'll have to put off the upgrades on your current home until that happens. Lastly, I'd suggest that you talk with a mortgage broker or lender, as they will evaluate your situation more closely and provide more absolute answers. You can use our lender matching service to find trusted lenders by providing your loan information here: Refinance Quote.

Thanks again for trusting Bills.com and we hope that the information provided has helped you Find. Learn. Save.

Best,

Bill

www.bills.com

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