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Do you have equity in the house you are selling? You should have a ballpark of what it is worth and know how much of a mortgage you have left. Then look into a home equity loan but you will have to be able to pay both the new mortgage and the loan (that will carry interest as well) at the same time indefinetly until you sell the first house-at that time you can pay off the home equity and mortgage with the sale money. It will cost you though.
We presently own a home that is for sale in Illinois .. well its a home on 40 acres w/ pond.
We are looking to buy down in Missouri.
Is there a way to buy a home in Missouri with the equity of our home / ground farm ??
We have atleast 125 K in equity (I am thinking closer to 200k)
I need advice please!
I hope this is the right forum!
How much is the 2nd home your looking to buy? If its less then the $125-$200K equity that you have currently in your first, go get a home equity on your current home, buy the second, then when the first property is sold, you can pay off the loan. This would keep the new property free and clear of any liens
OK here is what we want to do .. we want to buy a piece of property in Missouri (about 5 hours away from our home now) with the equity from this place.
Now when this place sells that money will be then used to pay off or pay down on the new place... we will be relocating.
I am realtor stupid! thats just honest ok so plain English and no term ..would be great!
OK here is what we want to do .. we want to buy a piece of property in Missouri (about 5 hours away from our home now) with the equity from this place.
Now when this place sells that money will be then used to pay off or pay down on the new place... we will be relocating.
I am realtor stupid! thats just honest ok so plain English and no term ..would be great!
Home Equity Line of Credit. (HELOC) Basically you take out a credit line on your old house for as much as they will give you. Then you use as much of it as you need for upfront on the new property. You can generally get a HELOC that will let the equity in your home get to about 20%. May even be better if your credit is good.
OK, what is stated above is all true. Simplified, you can either take out another mortgage on your current home....pay off your current loan and have cash left over to buy the second home (called a cashout refinance).
You can also take out another mortgage on your current home, however this mortgage will be a secondary mortgage where you keep your current first mortgage. This can either be in the form of a HELOC, or a fixed rate mortgage like your first. This is called a second mortgage no matter how it is set up (as a HELOC or fixed rate), and since it is secondary to your first mortgage the interest rate WILL be higher than normal.
The first two options above will all be tricky since you already have had or currently have your home listed for sale. Banks do not like to lend money if they are only going to be collecting interest for a few months.
A third option that no one has mentioned is something called a Bridge loan. A bridge loan is a combination loan that cross collateralizes two residences while you sell one and buy your next. They are used quite often in relocation scenario's like yours, and gets around the problem of your home already listed. Post your question in the mortgage forum, there are mortgage guys in there that will know the specifics and if it will work best in your case. Us realtors help buy and sell, and our job is to know a little about alot, so we only have a limited grasp of all the thousands of loan products that are out there (I used to be a mortgage broker) get in touch with a loan officer or mortgage broker, their job is to know alot about a little...the lending money side.
Thanks so much everyone - .. I hope I dont get into trouble for reposting the question..
I wonder if it would be best if I had a mod move my question??
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