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We have an owner financed mortgage (through the sellers IRA) and are able to now pay off the whole balance except for $20,000, which we need to then purchase a home for my mum and the shortfall is $20,000. We will then own our house worth about $430,000 and another house of about $175,000.
The owner financed mortgage has agreed we can reduce to the $20,000 and pay off within the 4 years left on the loan, at the same rate of 5.5%.
But would we be better off paying off the whole amount owed and borrowing the $20,000 a different way? We can afford to pay up to $700/mth.
Or remortgage with a different lender, is it good to actually have this line of credit?
We moved here 2 years ago from the UK and we are self employed. We have no debt and our credit has build up nicely over 2 years.
Or are there good independent websites to find the best deals? I'd rather not pay the fees involved sometimes for a mortgage given the relatively small amount needed.
Thanks!
We dont know your total situation other than you moved to America two years ago and have no debt other than your mortgage. That your credit has build up nicely over 2 years, and now you are looking to pay off your mortgage. Where do you see yourself in 1 year, 5 years, 10 years into the future?
I would look at one option way to refinance your primary property, since this has the most equirty. Buying out right the home for your mum. The extra cash applying to the balance to have a payment at or under $700 per month.
Noting your credit has built up nicely, if you pay off everything. Over a period a time, your credit could report "N/A", where you will be required to have co-signers in the future, because of the recent payment tranactions.
Go talk to a local bank or credit union and see about a 5 year note. You will not get a loan through typical mortgage lenders due to the low amount. This is just about a signature loan for most lenders, so they should be more willing to work with you.
I don't know what the minimum is these days, but several years ago one could not get a mortgage for less than 30-35,000. A home equity loan is different and maybe the way you need to go.
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