I have moved in my former rental property.
I have what the local community bank calls an investor owned residential real estate loan.
The rate is 4.75 % (30 yr.), I contacted the bank months ago about possibly moving in it, they said I would have to tear up that mortgage and refi at the current rate, which is now 6.5 % (30 yr.).
My inclination would be to not tell them, however every year I have to give them a financial statement which includes W.2 's, asset and liability statement and a copy of the lease.
I checked the documents but I don’t see anywhere that I would have to refi, but that might be just for those loans (IORR).
The irony of it is that in theory the bank would be at less risk in that it is now my primary residence but I would be adding years to the mortgage and a higher payment.
Just rubs against the grain.
How would you handle ?