I bought an investment property somewhere in the Northeast in 2004. I took out a 80/20 loan and the interest rates on both loans is quite high. Both loans are 7 year ARMs.
Worse, I believe that because of the recent pull back in prices, I might owe more than the house is worth; maybe $ 30,000 more. I don’t know for sure. I am also collecting rent which pays the mortgage for now but anyone who has dealt with tenants knows how painful it is sometimes.
I have been thinking about one of these options:
1. Put the house on the market and take a loss
2. Stay put and see what happens in the next year or so
3. Refinance to get one loan with a lower rate