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Is refinance a must to convert my primary residence into an investment property?

Asked by: 2172 views , ,

I am buying another home and making it my primary residence. I am planning to rent out my current primary residence, on which I have mortgage, thereby making it an investment property. Does that invalidate the mortgage terms because the mortgage was issued with the condition that the property be used as a primary residence. Do I have to necessarily refinance it by classifying it now as an investment property?

Thanks in advance for any help.

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1 Answers

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    Yes, if that is a term of your contract, and it is there when they give you a lower interest rate, you must refinance it as an investment before you can legally rent it out.

    Landlord - Aug 26, 2012 | Reply

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