What type of mortgage to get when buying new house before selling old one? - new mortgage
Are you looking to buy a new home for 600,000 dollars. I have to deposit only 10% in cash. We intend to sell our existing house right after the purchase of new ones. I have about $ 300.00 less my current home. I also have a range of $ 30,000 HELOC that is not used. I am looking for a new mortgage of $ 250,000. What is the best way to fund it? Use the back a loan? Another HELOC? What options do I have?
Wednesday, January 20, 2010
New Mortgage What Type Of Mortgage To Get When Buying New House Before Selling Old One?
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2 comments:
I would not a HELOC on your house because of closing costs, all costs of early termination, and because some banks do not allow funds from a HELOC as a down payment on another property. I think you should ask for a bridge loan. This type of loan is a loan from the "single farm payment" that does not require the payment of approximately 3 months, since in its entirety. If you have a good relationship with your lender, you can roll over the loan, if you are not your old home sold within three months. If your house is sold within that period, you must pay the bridge loan with the proceeds.
Let me break for clarity:
You have a capital of $ 300,000 to its current home, which is obviously not the solution, until a $ 60,000 cash on hand (10%) $ 30,000 HELOC that is not in use - If you look closely if you decide to use any, will be deducted from your property for $ 300,000.
Would you buy a house for $ 600,000 and is looking for a loan of $ 250,000.
First, you need $ 350,000 from the cash you have for a loan of $ 250,000 get. I refuse to this question on your character and soft loans for an answer.
Basic Math 101, said that the $ 30,000 HELOC is out of question, you first need to sell your house, so your $ 300,000 $ 50,000 Cash and cash to add reserves may have to leave $ 10,000 for closing costs and cash reserves .
They are now turning their intention to buy $ 600,000 to ...
Get a 100% financing (80/20), the use of $ 60,000 (or 10%) and cash reserves, plus closing costs and postage items.
After the sale of his house wie capital of U.S. $ 300,000, then you can use the proceeds to pay your new loan of 600,000 U.S. dollars. Make sure your new loan is not to pay any penalty, otherwise an arm and a leg costs are required.
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