Refinance on multiple properties? Please Help!

[Atlantasfinest]

Originally Posted by chuck-a-muck

If the loans were originated in-house, and not through a broker, I'd guess not. You'd want to mark it on your Outlook calendar, my friend -- it's your money.

If a broker set you up, he/she should have the re-set dates in his/her Outlook calendar in order to take care of you and MAKE MORE MONEY.

Brokers count on repeat business, where banks often re-contact you with just another telemarketer at $2.00/hr over minimum wage.

Lenders cannot 'continue the loan.' They can write a new contract on the same property; any lender can write a new contract on your property with your signature.

I did go with a reputible Mortgage Broker here in Atlanta Sharpe Mortgage - Atlanta, Georgia - Your Mortgage and Condo Specialists that shopped around to different lenders to find good rates before I eventually ended up closing on these two properties last summer so I guess I will just keep in contact with them over the next few years to seach my options out.

[chuck-a-muck]

You can consider yourself a good client of that broker -- stay in touch with them and make your concerns known.

As with your personal lawyer, tax accountant and financial advisor, your mortgage broker should be aware of your wants and needs -- he/she cannot read your mind. Good Luck!

[chet everett]

By 'accurately financed' I mean simply are these listed as OWNER OCCUPIED on the mortgage? Insurance? Taxes? My guess is that IS the case and that IS NOT ACCURATE. Thus when the mortgage broker that did these loans does call you up they will not be at the same attractive rates. They could very well be at GULP rates. Thus it may make sense to set up some sort of 'business entity' (I don't know the details of your situation, am not a lawyer/tax accountant and really don't know if LLC, S Corp or something else makes sense) but I do know that mid-sized business banks value having folks that have performing loans and you may want to investigate those options.

By re-evaluting the properties (all four) you have to look at not just the current situation, but the situation after the "worst case" kicks in for ALL the adjustable loans. If you are still happy with the cash flow and the appreciation then simply pay the new rates. If not than make your decision. Realize that if these are listed as "owner occupied" and that is NOT the case lenders are in a much different frame of mind NOW then when these loans were originated. MANY lenders probably would not be in a position to extend credit to you due to their rethinking how much risk they want to manage...

While you seem pretty sharp and seem pretty happy with the condos you have I have to say that I have seen more people lose their shirts on condos in even good times than any other type of real estate. There is a heckuva lot that is outside your control and you really have to be sure that you are not fooling yourself into thinking that these things are more marketable than they really are. Over the long haul the returns on real estate tend to lag other investments, like the major indexes. If you have already performed better than those MAYBE you should "take you chips to the window" if these things are really selling well...

[chuck-a-muck]

If you are concerned about owner-occupied vs. investment property, your only worry should be with the lender -- after the fact. Legal responsiblity to declare ownership/occupancy is yours at the time of signing -- after that time, there is normally a time-frame for the owner to keep/continue occupancy, and many lenders religiously monitor their borrowers' practices to confirm occupancy.

Since no declaration has been made by the originator of this thread that he surruptiously contracted his mortgage/s as an owner/occupier with full intention to rent/lease those properties, we cannot assume that that was his practice. In the future, however, his investment properties will be considered as such, and there will be a limit to his LTV and his rate will be higher than a comparable primary residence contract. Still, that is the future.