Should I keep, sell, refinance, or make extra payments?
Hello everyone,
I will try and be brief.I am in the East Houston, TX area. I am 4 years into a fixed 30 year mortgage. I have a 5.875% APR with $107,500.00 left to pay. Original loan amount was 115k. Appraisal should be somewhere between 200k - 250k. Monthly Gross from rents is $3200.00 Net is $2000.00. i have a 4 plex, one mobile home I own, and one mobile home that I just rent a spot to on this property. I talked to a mortgage broker today and waiting to get an answer on rather or not Fannie Mae will do a refi since there is mobile homes on the property. The one trailer I own is free and clear no liens. The lien is just on the 4-plex. I asked about being able to use the equity should I want to later to purchase other property and it seems we would be in the same boat. If i do get approved for the refi I would be going to a fixed 15 year at 4.25% APR. I would cut 11years and around 80k off the interest. Would this be a good thing to do? Or Should I think about selling this place and do a 1032 and move on? Or my other option is to pay down the interest on this loan via extra payments towards the principal. I do not know if this information is needed or helpful, but i have about 15k in reserve or a emergency fund for the property. I do not have a lot of maintenance issues, just some improvements I would like to do. i have owned this property since 2001. This is the year it was built also. Let me know what other information is needed or any good advice. I feel like I am not getting anywhere so that I can expand. It seems more like a hobby that I would like to be my full time job instead. Just can not figure out what I am doing wrong.
Thanks in advance for any and all your thoughts, ideas, and soulutions.
Lawrence Cox III