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My partner and I own a home together (tenants in common w/ right of survivorship). We have house payments on a 15 year mortgage, approx. $1950 per month. Both of our cars are paid off and we have no credit card debt. Our credit scores are immaculate. Our oldest child is going to a state college in the fall w/ a significant portion of the cost covered through scholarships and student loans. We'll probably be pitching in $4,000 in various expenses for her first year. Our combined gross income is approx. $100,000.
We are looking to move into the city in two years after our youngest child graduates from high school.
I've been looking at houses for awhile and found a great fit, unfortunately two years too soon...
My questions:
1) Is it possible to use the first house (the one we presently live in) as collateral in lieu of a downpayment for a second house? The first house is worth about $250,000.
The second house presently lists for $273,900 and probably can be gotten for $270,000 as it didn't sell the first time listed (way overpriced @ $319,900 for months, taken off the market, just came back a few weeks ago listed at $289,900 and the price was lowered to its present $273,900.)
2) Is it a good idea to refinance this first house and the second house together into a 30 year mortgage? The total mortgage would be about $400,000 as we owe $130,000 on our present house. Can you even get a single mortgage for two houses?
There are ways to structure the financing that would work, but you really need to focus on what the short term and longer term uses of each house needs to be. You cannot have two primary residences for you individual, though legal agreements can be drawn so that shared ownership exists for separate properties. Sometimes couples do this for vacation homes. A little on the "grey area" side of things for some folks, but definitely legal with the IRS and other important compliance situations.
There are ways to structure the financing that would work, but you really need to focus on what the short term and longer term uses of each house needs to be. You cannot have two primary residences for you individual, though legal agreements can be drawn so that shared ownership exists for separate properties. Sometimes couples do this for vacation homes. A little on the "grey area" side of things for some folks, but definitely legal with the IRS and other important compliance situations.
We'd be selling our present house in two years and then move into the city house as our primary residence.
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