3 years, 2 months ago
What does it cost so much extra to refinance duplexes?
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M$1 Answer
Usually it is because duplexes are considered investment property, rather than single home owner property. The idea is that the lender is taking more of a risk financing a duplex than a single home, because if one of the renters leaves the amount of income that is available to pay the mortgage is reduced.
In this economic climate, it actually might be safer to finance a duplex than a single home owner, since the number of renters is likely to go up not down, so this is a good question and a good point.
In this economic climate, it actually might be safer to finance a duplex than a single home owner, since the number of renters is likely to go up not down, so this is a good question and a good point.
source(s):
previous investments
previous investments
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M$
This is wrong. It cost more to refi a duplex because it is considered a two family home which makes it commercial property. As even single family homes that are investments have higher interest rates on the mortgage because it is now a business. But two different, unrelated people can own either side of a duplex and one can sell without the other. If they are seperate owners than this does not affect the others mortgage when one goes empty.