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Old 12-27-2012, 11:00 AM
 
66 posts, read 187,710 times
Reputation: 27

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Now that my wife got a job we are currently paying our mortgage and all of our bills and still roughly having 3000-3400 left over a month.

The ultimate goal is to sell our current house and get into a nicer/bigger one ASAP before the market goes up.

Our mortgage has about 27 years and 198k left on it at 4.75%
We also have a home equity loan of about 4.5 years left at 25K at 1.9%.

We have enough in savings to cover any emergencies if they arise. But not enough for a 20% deposit on a 450-500k house

Here are my questions for you all:

1) There is no way to sell my house now and roll over the home equity loan into my next mortgage is there? Even if its the same lender? If there was a creative way of doing this then I am all set!

2) Do I use the left over income per month to add to my mortgage payment?

3) Do I just save the left over income amount in the bank?

Any other feedback you have would be great or if you need any more information please let me know.

MANNNNY thanks in advance!
Matt
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Old 12-27-2012, 11:46 AM
 
426 posts, read 1,789,565 times
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Hi Matt.

Contact the lender who has your second mortgage, and ask them if you can transfer it. I suspect you have to go through underwriting but it should be painless.

Save your money in the bank. You will need it for the earnest money and cash reserves to qualify for the new mortgage.

I know its difficult to sell your house and close on another at the same time. I would have your home in contract at least before making an offer on a new home in most cases.
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Old 12-27-2012, 12:12 PM
 
66 posts, read 187,710 times
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wow, so you are saying it would be possible to sell my current house, use the amount I sell it for to close my "real" mortgage and keep my home equity loan alive on my next loan?
I didnt think this would be possible, although i was hoping it would be.
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Old 12-27-2012, 01:50 PM
 
426 posts, read 1,789,565 times
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Quote:
Originally Posted by MattNJ View Post
wow, so you are saying it would be possible to sell my current house, use the amount I sell it for to close my "real" mortgage and keep my home equity loan alive on my next loan?
I didnt think this would be possible, although i was hoping it would be.
Hey matt.

Its easier than we think. Just call up the bank.

You go to your home equity bank, ask them to approve you for the same line of credit on a new home, and then immediately use a portion of the new line to pay off the old line. This simultaneous action is virtually the same thing as 'transferring it' .



Hope this helps.
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Old 12-27-2012, 01:58 PM
 
66 posts, read 187,710 times
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right, but that will only work if I have equity with the new house?
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Old 12-27-2012, 03:14 PM
 
426 posts, read 1,789,565 times
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I dont know in this day and age if a bank will give you any more than 90% CLTV on a second mortgage.
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Old 12-30-2012, 09:49 AM
 
Location: MID ATLANTIC
8,211 posts, read 20,409,418 times
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No to adding it to the new home.

Tell them you have to move. Would they consider converting your heloc to a signature loan? Oh, AND NOT CALL IT A SHORT SALE!

No new lender is going to accept an old credit line against a new purchase. Yes, 80/10/10's exist, but only with a new purchase money second.
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Old 12-30-2012, 11:59 AM
 
66 posts, read 187,710 times
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Hey SmartMoney,

I will ask if I can change it to a conventional loan, ever heard of anyone having luck when requesting that?

PS- you probably dont remember me but you helped me out big time a few years back with advice in getting my first mortgage. thanks again.
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Old 12-30-2012, 03:43 PM
 
426 posts, read 1,789,565 times
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Quote:
Originally Posted by SmartMoney View Post
No to adding it to the new home.

Tell them you have to move. Would they consider converting your heloc to a signature loan? Oh, AND NOT CALL IT A SHORT SALE!

No new lender is going to accept an old credit line against a new purchase. Yes, 80/10/10's exist, but only with a new purchase money second.
I disagree with this. He wants a heloc and as far as I know he can do that as part of the purchase. Then when he pays down the heloc, he can then re use it as he sees fit.
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Old 12-30-2012, 03:55 PM
 
18 posts, read 60,340 times
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We went through this when we purchased a vacation home about 10 years ago. We bought the home and my husband and I used a home equity line of credit for part of the mortgage. Unlike a regular mortgage, once we paid it down some , we could spent that amount again. Its like having a credit card. The bank even offered to give us a higher amount because our house went up in value but we never used it. We sold the home in 2007.

So you can purchase the new home with an equity line for the whole purchase amount then as you pay it down you can spend it again but I wouldn't recommend it.
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