property insurance rates
I want to buy an investment property, is it better to use the equity in my house as a down payment or not,
If I buy the house at $ 175,000 (which is a starter home in my area) and put any down payment, the mortgage would be about $ 1140/month using the interest rate in my area (6.9%) when I add in property taxes and insurance and maintenance in addition to my benefit (25%) would be around $ 1850/month. Who would pay that for a 3 bedroom, 2 bathroom house with no basement and 1 / 4 acre? How can anyone not putting money down a further investment property and rent it for profit? FYI-our first house in this area has increased about $ 40-48000 in 2 years. The area is very hot. What to do?
Since the interest you pay for their "owner occupied" a home is tax deductible (even 2nd mortgages and Home Equity lines of credit) in the event of investment properties (Non-Owner Occupied) of interest is not, I personally think it would be better to use the value of your current home to put money on an investment property. Moreover, put money down on the investment propertey most likely reduce your interest rate. But with all that being said, I do not know the details of your financial situation and suggest going to your financial advisor for more information. If they have a financial planner, Ameriprise Financial Advisors know that is a great insurance company to meet (formerly American Express Financial Advisors, until they split last October). Anyway, good luck with that.
