Quote:
Originally Posted by Ridgefarmer63
Get a load of this....We have always thought it would be nice to own Winni front. Or perhaps even just rent for a period of time so we are trying to free up funds. We have a mortgage rate in the mid 5's on our farm, so I thought it would be a good idea to re-fi. NOT SO FAST. Since we have too much excess land, we do not fit into the mortgage lenders "box". Our ratios are great, plenty of equity left, beautiful home on a professionally managed forest (Forest Management Plan done). I have tried two or three lenders and when they hear 115 plus acres they so no. We have to pay a rate that's 2-3 % higher.
A lot of smart people on this forum, any constructive suggestions would be appreciated.
Help, before my %$#@in' head explodes.
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My guess, they see more value in the land vs the house. Based on my looking around, banks don't like lending on land... if they do the rate is higher as is the down payment so even if you did get somebody to underwrite a loan they probably will not come close to the full value of the property. Also, one other thing that comes to mind, if that property is in current use, IE tax deferred status they may not like that either. I'm no expert here just my thoughts. I will however disagree with NOT paying your mortgage.