Acre Lot
Refinance 6% mortgage for 2 homes on 10 acre lot to consolidate debt?
Just added another manufactured home on permanent foundation,1600 s.f., year 2000, to our 10 acre property. We can split the lot into two 5 acre lots, so each house is on 5 acres. Property values are increasing 10-15%/year in this area, even in this market. We have a 6% mortgage, 2 years old, and a 13% second mortgage for about $14000. We have about $45,000 in consumer debt, credit score in low 600’s. Should we try to use the value in our property to relieve us of the high interest consumer credit? Would we be better off, considering our mediocre creit score?
I’d be more than happy to work up the situation for you with some numbers. What is the balance on your first mortgage? How much is the property (properties?) worth if you were to split the 10 acre plot into two 5 acre plots? Based upon what you’ve said so far I’d imagine that you probably wont be able to get back into another mortgage in the low 6% range, however you may still see substantial monthly savings by consolidating the consumer debt.
Some food for thought – once a property exceeds 3 acres (typical threshhold 3-5 acres) a lender will price it as a rural property and you will see a rate increase. If you do decide to divide your plot make sure you do it in such a way that at least one is not considered rural due to the acreage. This will save you the headache of having to pay 2 rural rates.
Drop me an email and we’ll work out the specifics.
Daniel Algieri
DAlgieri@pacifina.com
(800) 202-2015 x 1491
70 Acre lot for sale in Paradise Valley, Montana
