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Replies (6)
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3426
Sure, you can do a cash out refinance of your primary residence, or you can obtain a Home Equity Line of Credit. I would suggest you plan for at least 20% down payment on the purchase financing, and possibly 25% if you will be buying as investment property. (20% would be OK if 2nd Home Criteria are met).
Your CPA can also give you information on tax advantages you could gain by paying interest on a loan attached to your primary residence.
Your CPA can also give you information on tax advantages you could gain by paying interest on a loan attached to your primary residence.
- w_b_c
- Contributions:3
What type interest rate for a cash out or home equity loan, as compared to the mortgage rates available. We there be an advantage to cash out more than the 20-25% and put it in the second house?
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3426
If you plan on having the loan for 7-10 years, the cash out would likely be the better choice, rate would depend on variety of factors such as term of loan and credit score. You can put a request in the Zillow Mortgage Marketplace to get an idea of what is available.
Yes, you might find that taking more out of your primary is advantagous, in particular if your purchase will qualify as investment property (higher rate). If it qualifies as Second Home, it should work out pretty similar on where you finance the debt. Credit score again is a key factor in that decision.
- Julann Carney, "Julann Carney"
- Contributions:208
You have do have both an opportunity to refinance your current residence for a short period of time in order to get cash from the house. There are application fees & closing costs associated with doing so. Or, you could choose an equity line of credit against the home. Banks offer fairly flexible plans on the later. Both also should be tax deductible.
As previously suggested you may want to discuss these options with your account or ask a local bank what would be the easiest for you to go with.
If you can muster 20-25% down on your new purchase you'll avoid mortgage insurance with a conventional loan (20% down); and have additional funds for closings costs not covered by a seller or for improvements to your new purchase home.
Not many Arkansas mortgage companies use the zillow mortgage marketplace. It may be prudent to speak with a mortgage company if your bank offers one or deal with a local mortgage broker.
Best of luck - !
Julann Carney
As previously suggested you may want to discuss these options with your account or ask a local bank what would be the easiest for you to go with.
If you can muster 20-25% down on your new purchase you'll avoid mortgage insurance with a conventional loan (20% down); and have additional funds for closings costs not covered by a seller or for improvements to your new purchase home.
Not many Arkansas mortgage companies use the zillow mortgage marketplace. It may be prudent to speak with a mortgage company if your bank offers one or deal with a local mortgage broker.
Best of luck - !
Julann Carney
- Caveat Emptor
- Contributions:500
your best plan would be to save the fees, and just live in the primary for a few months more. you could save up the down payment within a year without a house payment weighing you down.
- w_b_c
- Contributions:3
After talking with one mortgage company(churchill) I was told this would not work.Said they would not loan money from the primary to cover downpayment on the second. Said it had to be "seasoned money" & not a loan. My 401 is mine- if I take money out of it, is that considered seasoned? Is this the norm or just that company? I don't want to go into a mortgage company's office ,say the wrong thing , and not qualify.
How too get a downpayment without really trying
We have a primary residence (150K-175k) with no mortgage. We wish to purchase
now, a secondary residence(250k) that in 7-10 years will be our primary residence.Is it possible or smart to get a mortgage on the first to make the DP on the second residence? As soon aas we retire(7-10yrs) we woud sell the first house and put the remainted on the second.Just don't want to pull money out of 401 to get DP.
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