Home Buying in 07307>Question Details

Hernan1228, Home Owner in Jersey City, NJ

I have about 50K,I currently have a 2 fam. as my primary res. Should I refinance by mortgage (currently 6.1%) or should I buy an investment property?

Asked by Hernan1228, Jersey City, NJ Thu Apr 26, 2012

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I would refinance your primary residence and roll the closing costs into your refi. Take the remaining 50K and try and purchase a short sale investment property in Jersey City.
0 votes Thank Flag Link Tue May 1, 2012
If you have FHA loan then you can take advantage of streamline refinancing which does not require an appraisal. Refinance your home by paying some closing cost. You will end up paying 200 to 400 less mortgage with current avg interest rate of 4%. Go to amerisave.com and see how much you can save by refinancing. After refinancing, see how much balance you have and decide whether you can invest in another property. You should always keep 6 months of your mortgage as a balance with you to help you in worst scenarios. Give first priority for refinancing and then investment property.
0 votes Thank Flag Link Fri Apr 27, 2012
Considering the fact that rates are hovering at 4.3 for a 2 family (assuming you meet all the credit/financial requirements) then I would, unless you can find an investment property for 150K, as generally investment properties require 30% down payment.
0 votes Thank Flag Link Fri Apr 27, 2012
Why can't you do both Hernan? Are you underwater? It's a perfect time to by an investment property but you'll have to have at least 20% to put down and have 6 months of reserves left in order to qualify under Fannie & Fredddie rules. If you wish to discuss opportunities give me a call 973-769-2572
0 votes Thank Flag Link Fri Apr 27, 2012
Refinance the primary being that you can get a substantially lower rate than you're currently in. Then purchase the investment property which will more than likely require 20%-25% down depending on several factors.If you'd like to discuss your options in greater depth please do not hesitate contacting me at your earliest convenience.

Paul Marzolla
(201) 820-4420
0 votes Thank Flag Link Thu Apr 26, 2012
I understand your concern is the effect the refi would have on your capacity to take a new loan. you would be best to discuss this with a good mortgage broker.

If it came down to deciding between the two options, this would require an in depth analysis between the specific deals. This question could not be answered with a generality.

Amos Elroy
CDPE (Certified Distressed Property Expert),
SFR (Short-Sale Specialist Certified)

Residential Real Estate Investment Consultant
Lic. Realtor Associate
EXIT On The Hudson Realty
(888) 462-6573 / (888) HOB-NJRE
FAX (888) 462-6573
Office 201-437-0411

Twitter & Facebook: HobNJRE
Web Reference: http://www.HobNJRE.com
0 votes Thank Flag Link Thu Apr 26, 2012
You may be able to do both, but be smart about it. Do the refi first while you are looking for investment properties. Rates are at an all time low and you will be able to save major bucks monthly.

Then, as you are doing that start to look at properties. Find a good realtor that knows the market in your area, One that knows prices, what properties are renting for, can get them rented and what they can sell for in 3 -4 years.

You will need at least 25% down for your second property.. but, if you ask me.. The Jersey city market is tough.. It is overdeveloped and there are many rentals available in great buildings for a lot cheaper then you can probably do.. Unless you can find a good single family home to rent out.. Or look in another area.

For your Refi call someone outside.. Al is a good person, reliable and has great rates.
Call him about your refi, then call me about your investment.

Alfonso Esposito
Mortgage Loan Officer
NMLS#: 106827
Residential Mortgage
PNC Mortgage, A Division of PNC Bank
349 New Brunswick Avenue, 2nd Fl (mail stop: J1-J610-02-1)
Fords, NJ 08863

Cell: 908-531-8134
Office 732-738-6478
Fax: 855-208-8944

John Sacktig
direct: 732-213-1409
0 votes Thank Flag Link Thu Apr 26, 2012
Why not do both? With a $50,000 down payment, you will be able to purchase an investment property in the Heights, where you currently own, or in another area, and since you are an owner occupant at your current address, you will be able to refinance at a far more favorable rate than you are currently paying. We have a finance manager/mortgage broker in our office who can help you identify a loan product that makes sense in your situation; and I will be happy to help you find a new investmant that works for you. As a resident of the Heights myself, I know the area well. --Art Kaufman
0 votes Thank Flag Link Thu Apr 26, 2012
Call me or email
0 votes Thank Flag Link Thu Apr 26, 2012
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