Posted by Ken Foley on October 22, 2002 at 24:24:49:
Just Let Them Know you are renting it no need to refi. Let your insurance company know you may only need liability not contents insurance or other insurance that is less expensive than your current insurance.
I have been living in my current home for 4.5 years and recently refinanced the mortgage to a lower rate with the same lender. I have now just purchased a second home. Although this was not on my mind when I purchased my second home, I am now thinking of renting out my current home in a few months after doing some work on it. My question: Do I need to refinance my current home (again) at an investment rate, or does the fact that I have been in my home for over four years with the same lender mean that that the lender will not be bothered by me renting it out? What advice does anyone have regarding contacting the lender and letting them know of my change of plans?
Thanks for any assistance with my question. This is a great service.