Ask Terry Questions Refinance for lowere interest rate

Refinance for lowere interest rate

By Terry Savage on May 29, 2015 | Housing / Real Estate

I have a rental property that is underwater(worth 122,00 and owe 133,00) I would like to refinance to a lower interest rate. Company asys they will refinance from my 7.25 to a 4.75 but I will then owe 143,000. Should I just stay with my present rate. Dont want to owe more.

Terry Says:  Wow, on the face of it, that doesn’t look like a good trade.  I’d suggest you contact some other lenders.  Did you get an actual appraisal on the property?  It may not be easy to do a refi on an already underwater rental — but taking on another $10k in debt isn’t the answer.  Frankly, it might be better to try and sell it and repay the bank out of savings — especially if the property isn’t paying enough to cover the monthly costs of such a high rate loan — and if you don’t see the potential for future price appreciation.  Check with my mortgage genius — Leslie Struthers (



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