Refi After Option
i've just optioned my home, which the
buyer will exercise in 1 year or less.
but my local bank wants to help me
refi to lower my rate. I don't know what
to do, because once i refi i will owe
more than i optioned my home for. :-? :-?
Took my wife out to Carmel By The Sea last year, her first trip to California - She absolutely loved it, and says we are movng there, we saw the beautiful 4 million dollar houses along the coast - Just a few more investment properties, yeah sure! Great little fire station there too! Anyway....I would say you should run the numbers here to figure out what works best for you. Are you making cash on your current arrangement with your buyer? (i.e., they are paying more in rent than your mortgage and expenses (taxes, insurance)? What is your profit when they exercise their option at the end of the 12 months at your current balance? What, if any will your profit be if you refi? (sound slike none) How much more will your profit be monthly if your interest is reduced? I would look at both your monthly profit, and your option profit at the time of your tenant exercising their option, under both your current loan, and the refi'd amount. This should shed some light on which way to go. Hope that helps!