# Refinancing a home questions **URL:** \ **Category:** In My Humble Opinion\ **Created:** [November 17, 2012, 3:36am UTC](https://boards.straightdope.com/t/refinancing-a-home-questions/641276 "2012-11-17T03:36:34Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![DummyGladHands](https://avatars.discourse-cdn.com/v4/letter/d/49beb7/32.png) [@DummyGladHands](https://boards.straightdope.com/u/DummyGladHands)\ **Post date:** [November 17, 2012, 3:36am UTC](https://boards.straightdope.com/t/refinancing-a-home-questions/641276/1 "2012-11-17T03:36:34Z")
When my husband died, I had a (just) paid off home, and suddenly, as heartless as it sounds, no deductions for tax purposes. The tax man loveth a younger widow, and it was crazy, as I am gainfully employed. I purchased another home, a duplex, intending living in one of the units. In the meantime, I met someone, fell in love, and moved in with him. So although it was intended to be owner occupied, it never was. I am paying property taxes for an income unit, and landlord insurance, so it must be clear to the bank that I am not living there, as they pay both the taxes and ins. I have paid timely for 7 years. However, I would like to look at refinancing the house. I am sure it is under water, but it was never intended as a money maker, in fact, I essentially break even with the expenses-taxes, insurance, lawn service, water & sewer, trash, repairs, etc-I keep it for tax purposes. Do I have any hope of refinancing as an income property to a lower rate, and even perhaps a shorter term, or should I shut up and just keep paying the 6%+? ---
**Author:** ![SanibelMan](https://avatars.discourse-cdn.com/v4/letter/s/a88e4f/32.png) [@SanibelMan](https://boards.straightdope.com/u/SanibelMan)\ **Post date:** [November 17, 2012, 4:09am UTC](https://boards.straightdope.com/t/refinancing-a-home-questions/641276/2 "2012-11-17T04:09:59Z")
I think you’ll have a lot of difficulty refinancing an income property, especially if it’s underwater. My wife and I bought a house in Kansas City in 2006, planning to be there quite a while, but we ended up moving in 2009, when I got a job up here. We knew we wouldn’t be able to sell our house, so it’s been rented out since then (with one failed attempt to sell it in-between tenants). We’re paying 6.375% interest, and the rental income breaks even with the mortgage payment and HOA fees. Last year, I looked into refinancing it with a couple of different banks, including the one currently holding the loan. What I found was: 1) Banks are a lot less willing to refinance second homes and income property than owner-occupied properties, 2) You’ll have to pay around $500 to get the home professionally appraised, 3) You have no hope at all of refinancing unless that appraisal shows that you have at least 20% equity in the home based on its current value. I didn’t want to waste $500 just to have someone tell me what I already know, which is that my house maybe just above water, and that I’ll never recover the $20K I put down on it if I do sell it. ---
**Author:** ![twickster](https://avatars.discourse-cdn.com/v4/letter/t/ec9cab/32.png) [@twickster](https://boards.straightdope.com/u/twickster)\ **Post date:** [November 17, 2012, 5:19am UTC](https://boards.straightdope.com/t/refinancing-a-home-questions/641276/3 "2012-11-17T05:19:44Z")
Moved MPSIMS --\> IMHO, our forum for legal, financial, and other advice.