Thinking about leasing my primary residence and buying another home (interest rate, second mortgage)

[emirate25]

I bought my first house two years ago and I am thinking about leasing it at the end of this year/early next year.

First question:

I want to take advantage of the interest rates out there so my question is would it be difficult to get a second mortgage with a bank during this economy?

Second question:

Should I refinance my current home, get a lower payment on it, lease it out then buy my second property? Or should I just go ahead and keep the financing as is on my current home and buy my second property?

[VictorBurek]

First question...as long as your income is adequate to cover both mortgage payments you should have no issues.

Second question...Yes and do so before you buy the next home. Right now this property is your primary residence, and you should make sure you have the most optimal mortgage on it. If you wait to refinance until after you bought the next home, then this home would be an investment property which has higher interest rates and tougher guidelines.


Before anyone chimes in, right now this home is the primary residence.. Just because the OP says he might buy a new one which then makes this one a investment property, doesnt mean the OP will definitely buy another.

[emirate25]

I forgot to say, that the first home that I bought was my investment property although is currently my primary residence. The second home that I am looking to buy, will eventually be where I will be living in full time.