Jules B asked:
Can I borrow out of my equity? Would it be a home equity loan or something else? Then when I sell my house, how would I pay off the mortgage and convert the equity loan into my new mortgage?
ROBBIE
Can I borrow out of my equity? Would it be a home equity loan or something else? Then when I sell my house, how would I pay off the mortgage and convert the equity loan into my new mortgage?
ROBBIE
MASON
What you want is a “bridge” loan. Based on your current equity in your home, a loan is issued to you, presumable by a bank, which is repaid upon the sale of the home. It’s quite simple if you have the equity, and a decent record of financial stability.
THOMAS
Be very careful with a bridge loan. It’s one thing if the closing date on the old property is set, but hasn’t gone through. It’s another if you haven’t even listed the property.
For every month that you own TWO properties, you’ll be making TWO mortgage payments. Even a HELOC can’t cover this forever.
THAD
Honestly right now is NOT the time to own a home you need to sell pretty quickly or risk losing both homes. I also would not get a bridge loan either.
Can you afford two house payments and two expenses on the homes?
Is your credit near perfect?