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Answers (8)
- Kathleen Storin Coutu, "Kathleen Coutu"
- Contributions:4
No, not as a rollover but speak with a local lender or two that may have some creative ideas. Probably would depend on the appraised value and what you are payng for the new home.
- sunnyview
- Contributions:25139
No. Banks won't do that. Anyone who tells you different is selling something.
- wordsmth
- Contributions:361
No.
The reason is that the lender on your new home wants sufficient protection. It wants to make sure that the money it's lending you is secured by property that--if it needs to foreclose--can repay the mortgage.
Example: You want to buy a $100,000 home. The lender wants 20% down. In other words, it'll only lend you $80,000. That spread is its safety margin. If it has to foreclose, it's hoping that it'll be able to sell your home for around $100,000, more than covering the $80,000 you owe.
But let's say that the second mortgage on your old home was $10,000, and that "rolled over" to the new mortgage. Now your new lender would only have a 10% margin--which wouldn't be enough for an 80% loan.
As other answers note, you can do that with a car loan, but that's because the numbers are smaller (among other reasons). Home buying is different.
The reason is that the lender on your new home wants sufficient protection. It wants to make sure that the money it's lending you is secured by property that--if it needs to foreclose--can repay the mortgage.
Example: You want to buy a $100,000 home. The lender wants 20% down. In other words, it'll only lend you $80,000. That spread is its safety margin. If it has to foreclose, it's hoping that it'll be able to sell your home for around $100,000, more than covering the $80,000 you owe.
But let's say that the second mortgage on your old home was $10,000, and that "rolled over" to the new mortgage. Now your new lender would only have a 10% margin--which wouldn't be enough for an 80% loan.
As other answers note, you can do that with a car loan, but that's because the numbers are smaller (among other reasons). Home buying is different.
- Erin Diaz, Broker ~ Owner, "Beaches_Backroads"
- Contributions:232
Hi There!
You have gotten some good answers here, but I have to say it all depends on the situation which is different for everyone. The lender may be able to work something out with you. If you are purchasing another home your credit can be hurt by the short sale so attaching the 2nd to you personally may work. I really cannot stress enough talk to your lender or a local mortgage broker. If you need a referral fell to call & I can give you some names of some really great guys!
Good Luck
- Thach Nguyen, "thachn"
- Contributions:794
Sorry No
- Linda Strasberg, "L Strasberg"
- Contributions:2315
Are you trading in your used car? The answer is NO.
- wetdawgs
- Contributions:26833
If you are proposing getting a loan for more than the value of the new-to-you house, the answer is no, not any more.
Sometimes you can take out a personal loan to cover the difference.
Sometimes you can take out a personal loan to cover the difference.
- Joshua Cullion, "Joshua Cullion"
- Contributions:283
Hi -
Interesting question - I would suggest talking with your lender directly or perhaps another bank to review your qualification options and stipulations attached to the 2nd mortgage.
Good Luck,
Josh
RE/MAX Professionals
If I sold my house but didn't get enough to payoff 2nd mortgage, can you roll it over into a new hom
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