[gefleif]

switch mortgage? HiI'm currently living across two places and want to rent my house out to cover/contribute to the cost of the mortgage. If I pursued this, and didn't tell my mortgage company, what bad can become of it? In these difficult financial times, wouldn't they just rather have continuity of the payments still coming in?I know people that rent properties out and pay buy to let APR's that are a lot higher. I also know people who have rented out their house and they have had no problems with not telling their lender.Should I tell me lender or not? This might mean paying an arrangement fee of a few hundred and a much higher APR which if that high, I probably wouldn't bother with.Thanks.

[Hugh Jass]

they dont care, just make the payments

[thunder6371]

the lender i wouldn't worry about it's your insurance. your insurance company won't cover you if your renter burns your house down. That you better think twice about

[mack]

If you bought and lived in you current home and then decided to rent it out, there is no reason to tell your lender anything.Investors pay higher rates than those who occupy the homes they buy. So, as long as you have lived in your home and purchased it with the intent to live in it, you have played by the rules.For instance: A guy in the military can buy a home one day and be sent to a different state the next week. As long as his intent was to live in the home, the subsequent change in circumstances means little.SO. If you've lived in your current home for a period and then bought this new home you want to move in, there is nothing wrong with renting your first home out.

[Senior Business Consultant]

If your Mortgage is a Traditional Mortgage, meaning a fixed 15 year or 30 year, I would not worry much about it.However, if you have an Adjustable Arm then you may want to contact your Lender a few months before it renews. Depending on your relationship with your lender it should be no big deal.What would happen is that you Loan would be converted to Commercial loan and quite possibly re-appraised along the lines of a "Income Approach" This could be good or bad.Either way, it is something that should not be of a great concern. And Lenders will sit down and discuss it with you. I would call your banker and See if you can come in for a meeting. Simply let them know your idea and see what they have to say. Dont worry they are not going to send the police or try to make you pay off the loan. Just indicate that someone had approached you to rent the home and you are looking at all options. Build a relationship with your lenders and you gain more leverage.Good LuckSean

[Ross]

Don't worry about the bank but tell your insurance company. You need different coverage. Your risks and needs have changed you need to cover yourself. If you don't do this and you make a claim you may find you aren't covered the way you need to be.