Home Buying in 32907>Question Details

Joe Giordano, Both Buyer and Seller in Palm Bay, FL

Blanket Mortgages

Asked by Joe Giordano, Palm Bay, FL Tue Nov 27, 2012

My new wife and I own 3 homes. 2 of them have mortgages. One we own out-right. We were thinking we could reduce our monthly payment by getting a blanket mortgage against all three so we only have to pay one bill and hopefully get a better rate. We are currently paying an average of 8% between the two properties with 30 year fixed loans. We owe about $510K between both properties. The house we own out-right has 100% equity and is valued around 170k. My wife works and earns 70K a year and we have about 40k in rental income from the two properties. One in chicago and one in NJ. Any ideas on what steps to take if this is at all possible? I got sick last fall, so I'm not working full time, but I do earn about 40K a year freelance but my wifes credit is better then mine.

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Steve (888) 662-4404’s answer
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Unfortunately, its likely that you will not be able to do anything, especially with all the new Obama over-regulations that have crippled the mortgage industry!

But wait.....its gonna get even worse in 2013 with the further implementation of the Dodd/Frank Act (i.e. Death Star for borrowers)!

Lenders were actually being more flexible over the past 6 months with the anticipation of a Romney win and the repeal of this nasty, anti-business Dodd / Frank Act, but not now.

Hope and Change? More like a Clown Car Full of Horrors as we’re all finding out!
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1 vote Thank Flag Link Tue Nov 27, 2012
A blanket mortgage is designed to be used in a situation where a developer purchases a large piece of land and develops and sells smaller parts of that land. It allows the developer to sell off small tracts of land without having to pay off the mortgage or refinance each time a sale occurs.

You're best bet is to refinance each individually, and at a much lower rate if you have positive equity in them. There are a lot of creative ways to finance real estate.

We specialize in investments, so feel free to send me an email and I can help you out further and put you in touch with some local lenders here.

John@RelianceTrustRealty.com
0 votes Thank Flag Link Tue Dec 18, 2012
There are a lot of professional mortgage lenders in Melbourne and Palm Bay, that should be able to help you with your decision. I also like run things by my CPA and my financial planner before making these decisions. Best of luck with your health in the new year!
0 votes Thank Flag Link Mon Dec 3, 2012
I am assuming that the house that is paid off is in Palm Bay. I would leave the home that is paid off alone, and talk to the other lenders in Chicago and New Jersey, about refinancing individually, in order to lower your interest rate. It seems that a credit score of a high 700 they would do it.

You could also create an LLC and put them under the business to protect you if you ever default on the one that is already paid.
0 votes Thank Flag Link Tue Nov 27, 2012
^This is another option we are looking at but we aren't worried about default. We are more interested in dropping the payment so we can use the extra money we save every month to purchase another rental and just deal with one company. Our credit scores in 655 and 680 so not quiet the 700 yet. We are in no rush, but it seems like this would make sense.
Flag Tue Nov 27, 2012
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