Home now a rent house

[Albert]

I purchased a home and now after 3 years of living there I'm converting it into a rent house. Housing is is demand where I live due to hurricane damages. I remember when signing up for my mortgage 3 years ago they asked if I would be living on the premises. I believe you get a lower rate if you are. Do I have to notify the lending company that I am moving out and renting the property? And what should I do about the insurance coverage? I think the insurance rate could be lower seeing as I won't need to insure any personal property.
I know interest rates have gone up a bit since I financed the house, and would like to avoid paying a higher rate but I don't want to get into trouble.

[HomeGuru]

Originally Posted by Albert

I purchased a home and now after 3 years of living there I'm converting it into a rent house. Housing is is demand where I live due to hurricane damages. I remember when signing up for my mortgage 3 years ago they asked if I would be living on the premises. I believe you get a lower rate if you are. Do I have to notify the lending company that I am moving out and renting the property? And what should I do about the insurance coverage? I think the insurance rate could be lower seeing as I won't need to insure any personal property.
I know interest rates have gone up a bit since I financed the house, and would like to avoid paying a higher rate but I don't want to get into trouble.

**A: ask your lender and your insurance company as we do not know what their respective policies are.

[nexus6]

Ok, I know you want to have your cake and eat it too. And that's ok I guess, don't call your mortgage company because you're not going to like what they are going to tell you. If you want to rent your house to a stranger you're going to have to get a lease agreement, get renters insurance and so on and so on. Must home owners do this privately with the renter keeping their current mortgage as it is now and keeping it hush hush without letting the bank know.

Must importantly you have to be ready to be a lanlord and put up with all the baggage that it brings with it, damage to the property complaints, permits from your local town, etc.

If you want to set up your mortgage as an investment property for you to legally and formally be able to rent/lease, you will pay the price in rates and closing costs of the new mortgage so you would need to refinance it and go through all the qualifications of the loan process.