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My husband and I own our home here and really don't want to sell it. we owe 15k left on mortgage . Question is that can we buy another house in another state and get it all combined into one mortgage and not have to insure the one we have ? main reason for moving is health reasons and economy
One mortgage is secured by one property. Pretty basic idea that lets lenders be sure that they can maintain appropriate collateral.
Each property you own needs to be insured to protect your from loss, as well as the lender.
If your have sufficient income to purchase an additional property (and pay for insurance and property taxes) most lenders will be happy to write a new mortgage for the new purchase all the way up to FOUR mortgages, after which they cannot sell them to Fannie Mae/ Freddie Mac.
If you want to move and go shopping for a new house I would recommend NOT making a purchase until your existing home is listed for sale/ finds a buyer. Although technically "bridge financing" is available so that you could be making payment on two homes at once, there is a rather large risk that the first home will not sell and you will be making payments on a home that you are not using for a long time. Not a good idea when home values are falling in many parts of the country.
My husband and I own our home here and really don't want to sell it. we owe 15k left on mortgage . Question is that can we buy another house in another state and get it all combined into one mortgage and not have to insure the one we have ? main reason for moving is health reasons and economy
You should keep the insurance. If the house was destroyed that would be your only recourse for compensation. Otherwise you just lost a valuable asset.
No, you can't get them both rolled into one mortgage. And I don't think the mortgage holder on the first house is going to allow you to not have it insured. It's one of the stipulations in the mortgage....that you carry insurance. If there isn't insurance on it they will place insurance on it and charge you for it. You think your insurance would be high now? See what they charge!
An option is to rent the property out. Then it's not vacant. Or...tell your insurance company it's going to be used as a 2nd home, not that it will be left vacant.
No lender will give you a single mortgage that encompasses two different properties. A mortgage that covers 1-4 units still is a single mortgage, but on a duplex, triplex or quadriplex.
The mortgage will want you to provide insurance or they will place forced policy, which is usually a lot higher than the cost of non-owner occupied 2nd home.
You only owe $15,000? Holy cow, don't re-mortgage (even if you could in this idea) it when you're fixing to own it free and clear in the very near future! What's your debt ratio? Do you have income sufficient to qualify for the 2nd mortgage? When you move, will there be employment there? Maybe you have a job offer already? It would help to know where you are in KY (city, town, little farmette?), and where you're wanting to move to.
Wish I only had $15K left on mine! yowie
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