Should I sell now or would refinancing be a mistake?

Question by Sheila: Should I sell now or would refinancing be a mistake?
I am 5 yrs into a 30 yr fixed first 10 yr interest only mortgage. This is a rental property that I have to pitch in 100$ every month to make work. I have approx 20,000 equity if I were to sell now. I have been turned down twice for refinancing and the company I mortgage with is no different.

Best answer:

Answer by sassy25
Sell now since you are operating at a loss just paying interest on the mortgage. How will you make the payments when principle gets added in.

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3 Responses to Should I sell now or would refinancing be a mistake?

  1. the tax lady says:

    Who did the numbers when you bought this albatross?

    You have an interest only loan, but the rent isn’t even covered the rent.
    I have no idea what this is doing to your taxes since you have a loss even before depreciation is taken into account. (If your income is too high, you postpone the loss until you have income or sell.)

    Clearly you think you need to refinance and no one is willing to do it. Selling is your other option.

  2. TheBitterTruth says:

    Your currently making NEGATIVE $ 1,200/year on your $ 20,000 investment. So think about it this way.

    If the bank had a 1 year CD that next year guaranteed it would be worth $ 18,800 would you put your money into it? With this Real estate market speculating future values is suicide so I think the answer is clear you must sell.

  3. Sharon says:

    Like so many people right now, me and my husband where about to lose our home

    but we went through a company to lower our mortgage payment, they also helped with

    our finances (debt consolidation). I will give you the company that we used, very

    reputable and i have a good friend who is going through the same process. Hope

    this helps:)

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