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Hello. Unfortunately and sadly my mother passed away a month and a half ago due to complications from pancreatic cancer. Now my brother and I are dealing with her estate that was inherited by us. We both received decent sums of money (roughly 90k each) and her home. Her home is the house I grew up in, she grew up in, and the same one that my grandparents bought brand new back in 1962, so needless to say it has some level of emotional value to me. My older brother and I inherited it with an amazing loan that my mom had @ 2.65% interest rate, owing $99,000 out of 120,000. 30 year fixed loan. The home is currently worth about 150-160k (my friend just sold the exact same house around the corner within a week of putting it on the market for 160k).
My problem is, if I could keep the mortgage as so in my name, then everything would be perfect. My little half brother (same dad different moms so no financial attachment to the home) is renting it with his newborn son and finance. My older brother and I would love to keep this same scenario, however I am told that I must refinance the house in my name. To do the loan as a conventional they want my brother and I to put $26,000.00 down (20 grand plus 6k for charges of closing/taxes upfront/proabbly refunding escrow) and I would get the home at an interest rate of 5.15% on a 30 year. That just seems so freaking high! and with 20k taken off the loan (down to owing $80 grand) the payment will still have gone up like 40 bucks a month. I am also taking into account that this home is no longer homesteaded because my older brother and I both own our own homes.
Do you think this is a crazy idea to keep the house and rent it to him, or am I nuts and should definitely sell it. My mom's stuff is still in the house in storage so I would also have to rent a uhaul and move it if we sold it, and above all I love supplying a home at a discounted rent price to my little brother and nephew. Does anyone know of a way to get any special treatment in financing to keep the house without paying ridiculous investment property mortgage rates/terms?
My problem is, if I could keep the mortgage as so in my name, then everything would be perfect. My little half brother (same dad different moms so no financial attachment to the home) is renting it with his newborn son and finance. My older brother and I would love to keep this same scenario, however I am told that I must refinance the house in my name. To do the loan as a conventional they want my brother and I to put $26,000.00 down (20 grand plus 6k for charges of closing/taxes upfront/proabbly refunding escrow) and I would get the home at an interest rate of 5.15% on a 30 year. That just seems so freaking high! and with 20k taken off the loan (down to owing $80 grand) the payment will still have gone up like 40 bucks a month. I am also taking into account that this home is no longer homesteaded because my older brother and I both own our own homes.
Do you think this is a crazy idea to keep the house and rent it to him, or am I nuts and should definitely sell it. My mom's stuff is still in the house in storage so I would also have to rent a uhaul and move it if we sold it, and above all I love supplying a home at a discounted rent price to my little brother and nephew. Does anyone know of a way to get any special treatment in financing to keep the house without paying ridiculous investment property mortgage rates/terms?