Refinance A Sub 2?
Hello all,
Lets say you find a property with an existing mortgage with a rate of %8.0.
Using sub2 technique and getting the title, would you be able to go out and refinance that mortgage at a better rate, such as the great rates they have out there today?
After all you would have all the benifits and rights by holding the title, right?
Getting the mortgage refinanced you could get a lower mortgage payment for greater cash flow on a lease option deal.
Also, you could pull some cash out of the property for improvements, more money down to the seller if needed, or put the extra money in your pocket.
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Another thing, when you get the title doing a sub2, would you be able to get a home improvement loan if extra cash is needed to get the deal done? Would that flag the original lender in any way?
Thanks,
Laning1[ Edited by Laning1 on Date 04/15/2004 ]
Yes
Yes
Yes
Exactly
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Certainly
No. If you do it right...
:-D
Sam[ Edited by samedwin on Date 04/15/2004 ]
Sam,
Sounds like I hit it on the nose!!
Could you elaberate on the
"If you do it right" part?
Thanks
Laning1
Laning,If you plan to keep the house a while or live in it yourself by all means refinance. But you better hurry 30 year loans in Alabama just went to 6.0% today at most lenders. Buy only pretty houses and you do not have to worry about home improvement loans. If you plan to resell the house in 2-3 years I would leave the loan as it is in the sellers name. Sub2 gives you control of the house without using your own credit.