Bi-weekly payments on rental property?

**jIM_Ohio** · 08-11-2010, 08:15 PM

Originally posted by azcassie View Post

We currently do bi-weekly payments on our personal home but I was wondering if it makes sense to do bi-weekly payments on our rental property. The mortgage balance is $87,000 interest rate of 6.75%. We aren't too concerned with the lost interest that we won't be deducting on our taxes. We were hoping to pay down the principal a little faster in hopes of being able to refinance in a few years. Assuming the market picks up a little. Any advice is greatly appreciated.

why wait to refinance? it can't get better than it is now?? I was quoted 4.25% for a refi today.

**azcassie** · 08-12-2010, 08:08 AM

Originally posted by jIM_Ohio View Post

why wait to refinance? it can't get better than it is now?? I was quoted 4.25% for a refi today.

We would have to pay $12,000 cash on the mortgage in order to refinance. Our mortgage is for $87,000 but the house is only worth $100,000. We were told that we need 25% equity in the rental property. We don't really want to pay $12,000 toward the principal. It would then take us 6.5 years to earn it back.

**jIM_Ohio** · 08-12-2010, 08:11 AM

Originally posted by azcassie View Post

We would have to pay $12,000 cash on the mortgage in order to refinance. Our mortgage is for $87,000 but the house is only worth $100,000. We were told that we need 25% equity in the rental property. We don't really want to pay $12,000 toward the principal. It would then take us 6.5 years to earn it back.

Find a different mortgage broker

I have about 6% equity in my house (on a good appraisal) and just received paperwork to refinance. I will have PMI for about 5 years, but overall my payment drops $500/mo even with PMI included.

Find a different bank.

Bi-weekly payments on rental property?