Mortgage Question & Renting
We made up our mind, we want to move to the Villages. However, we still have to clear up some business here back north, things like selling our home, and pushing out our millennials returnees. Other than that, we have a question.
We found the village and the house we want. We have been considering buying it now, and renting it out until we can get down here. The bank is willing, but there is a stipulation, and that is if we rent it out long term, it is considered an investment property, and the interest rate is 1/2 point higher.
Anyone out there with experience in this matter? Suppose we agree to rent it out monthly at the lower interest rate, and then say six months or one year from now , we decide to rent it out on a long term basis. Can we do this? How will the bank respond?
What would happen if we started the rental process at the higher interest, that of a long term rental and then in a year made the break and moved. Would we be saddled with the investment rate for the remainder of our mortgage?
Any insights would be welcome.
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