I know you have to live in your primary home for a year before you can turn it into a rental. If I was to refinance to get a better rate, would that 1 year period reset?
@Jordan Woolf I think you are asking if you already OWN the property, can you refinance and them move out right away? If that's the question, then no, you cannot do that. When you refinance you will sign paperwork that would state your intention is to live in the property for the next 12 months. Now, life can change....but if you did need ANOTHER primary home loan before that 12 months is up...you would need very strong reasons why - like your family grew or your job transferred you too far away to commute (usually 90 miles or more). Hope this information helps. Thanks!
@Andrew Postell thanks. I have lived in my current home for about 7 months. I thought about refinancing to get a better rate. I also consider turning this one into a rental after being in it for a year. I wasn’t sure if I would have to wait an additional year after refinancing, or if I could still turn it into a rental after the initial year was up. You answered my question though and I will hold off on the refi.
@Jordan Woolf was something going on when you purchased your property that you received an unusually high rate? It would be unlikely for you to get a significantly lower rate after only living there for 7 months. You have to pay all of those closing costs again too.
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