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Answers (4)
My gosh, the two agents on this post have posted terrible and wrong advice!
Sharon: you absolutely can get a normal mortgage against a home. ever hear of a refinance? The rate will likely be a little worse than a purchase loan, but assuming 80% loan to value, it will still be a good rate.
Harold: an adjustable loan during the time of the lowest rates in history is a doofus decision. Your friend saved a very small amount today, only to face a very real risk in 10 years. I'd count rates at 10% a decade form now as fairly likely, give the reality of our current deficit and gridlock in wallstreet. I hope your friend really loved his $50 a month rate savings, when his mortgage doubles!
Sharon: you absolutely can get a normal mortgage against a home. ever hear of a refinance? The rate will likely be a little worse than a purchase loan, but assuming 80% loan to value, it will still be a good rate.
Harold: an adjustable loan during the time of the lowest rates in history is a doofus decision. Your friend saved a very small amount today, only to face a very real risk in 10 years. I'd count rates at 10% a decade form now as fairly likely, give the reality of our current deficit and gridlock in wallstreet. I hope your friend really loved his $50 a month rate savings, when his mortgage doubles!
- Dan, "the_country_hick"
- Contributions:4699
Whatever you do make sure you get a fixed rate loan. A variable rate (10/1 etc.) would reset at almost certainly a much higher interest rate in the future. As interest rates are exceptionally low a fixed rate makes absolute sense for any loan you get.
- Harold Sharpe, "So Cal Homes Realty"
- Contributions:143
I have a friend that did this and he got a 10/1 loan at a real low rate.
Talk with a couple of lenders, loan brokers and see what your options are.
Talk with a couple of lenders, loan brokers and see what your options are.
- Sharon Patterson
- Contributions:44
You would need a home equity loan to take cash out. I believe the interest rate would be much higher than a 30 year mortgage on another home you purchased. To weigh your options, you may want to talk to a lender.
If I take a loan out against my current home that is paid for and use the money to pay cash for anot
This is actually my moms home, the goal is to rent out the 1st home to pay the loan, would sell but homes are not selling in the area and physically my mom needs to get to a single story.
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