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2 properties, 1 Loan...what is best to do?

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rowz

Member
New Jersey.

Greetings and thanks for your comments.

Not quite 2 years ago, I re'fid my principal residence [with only 2 payments to go before it was paid off!] to purchase a rental property.
Thankfully the market here has not lost a great deal of value and even with that my LTV is at 50% for the principal residence.
The rental property is free and clear.

My self employed & very modest income was bolstered by my excellent credit, so I received a good rate for the time of 6%.

I would like to re-fi and place some debt on the rental [maybe alll of it] and my current lender [BoA] has just emailed me a re-fi offer of 4.75 w/ 1.5 pts.

I had to refi the principal resodence to buy & reno the rental.
I do not know what BoA will think about all this as I did not tell them that I was buying another property.

Should I expect a problem with them about this scenario and/or should I just continue to shop around?

Thank you for your time and atttention.

RowZ
 


rowz

Member
Yeah, I do.

Is the lender going to be upset that the proceeds of the loan were used to purchase another property? If so, what can they do about it?

Thanx
 

FlyingRon

Senior Member
Whether they get upset is not a legal issue.
If they ask you what the funds are for and you LIE then it becomes a legal issue. Cash out refis and many HE loans are for "personal use."
 

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