Question by dannyb41: How can I refinance if I have only 5% equity in my principal residence.?
I want to refinance to relieve myself of the mortgage insurance payment. I have an additional house that is paid off which I am currently renting. Is there some way I could combine the two properties to make the refinancing of my current home possible?I
Best answer:
Answer by f80william
You can obtain a small mortgage on the free&clear house and paid down the loan on the first house.
for most mortgage loans, if the loan-to-value ratio is less than 80%, you can avoid paying the mortgage insurance.
run the numbers, make sure you can manage the new payments and it’s worth your time to do it.
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