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tigburls
LSU Fan
Member since Feb 2010
273 posts

New Mortgage using current home equity
What are the best options to bridge the time period between buying a new home and selling your current home? I will be using the equity in the house for my downpayment. 80/15/5 kills your rate and HELOCs don't seem like a great option. Is there any other option and does anyone have experience with this scenario?


bubbz
Baylor Fan
Baton Rouge
Member since Mar 2006
21527 posts

re: New Mortgage using current home equity
Why would a HELOC not be a great option?


tigburls
LSU Fan
Member since Feb 2010
273 posts

re: New Mortgage using current home equity
It may be unfounded as this is my first time dealing with this but my concern would be if my old home doesn't sell quickly I would be on the hook for two mortgages and a HELOC.


PearlJam
Auburn Fan
NotBeardEaves
Member since Aug 2014
12063 posts

re: New Mortgage using current home equity
quote:

What are the best options to bridge the time period between buying a new home and selling your current home?
Make the purchase and closing of the new home contingent on selling the current house.


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jmtigers
Southern Miss Fan
1826.71 miles from USC
Member since Sep 2003
4825 posts

re: New Mortgage using current home equity
Sell. Rent. Buy.


hottub
Florida State Fan
Member since Dec 2012
1010 posts

re: New Mortgage using current home equity
quote:

It may be unfounded as this is my first time dealing with this but my concern would be if my old home doesn't sell quickly I would be on the hook for two mortgages and a HELOC.



Not trying to be a dick, but Duh..... That’s the risk in buying your next house before you sell your current house.


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tigburls
LSU Fan
Member since Feb 2010
273 posts

re: New Mortgage using current home equity
He asked why I was concerned about a HELOC. I answered right or wrong.

And yes I understand it's not ideal. That's why I asked, hoping to mitigate my risk and learn something.
This post was edited on 9/21 at 6:05 am


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tigburls
LSU Fan
Member since Feb 2010
273 posts

re: New Mortgage using current home equity
quote:

Sell. Rent. Buy.


I'm thinking you're right
This post was edited on 9/21 at 6:00 am


baldona
Auburn Fan
Florida
Member since Feb 2016
10438 posts
 Online 

re: New Mortgage using current home equity
You could do a cash out refinance also OP.

Helocs often have no or little cost and you can get interest only for a year or 2 usually. So while there is risk, the risk is generally cheap and limited.

The last thing you want to do is push yourself to buy or sell one property in a hurry and lose a couple $1,000 because you were in a rush.

Your other option is to find a short term rental, but again that won’t be cheap. Just plan on it likely costing you $3000-4000 and move on


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756
LSU Fan
Member since Sep 2004
13927 posts

re: New Mortgage using current home equity
Get a bridge loan from the bank


TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
31998 posts

re: New Mortgage using current home equity
quote:

Get a bridge loan from the bank


That's what I did.
Found a good deal on a house back in 2002, had just put my house on the market. The sellers were gone, transferred to Washington state after 9/11. Closing on their house had fallen through three times, they wanted to sell quickly. At the new price, I was afraid it would sell before my house would. And they were willing to pay all closing cost.

Got a bridge loan with a mortgage broker. Then 90 days my house was sold, converted the mortgage into 15 year note, and eliminated PMI.


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rattlebucket
LSU Fan
SELA
Member since Feb 2009
8100 posts

re: New Mortgage using current home equity
Bought house we really liked with 80 1st HELOC 10 and 10 down then put other house on market thinking it would sell quickly. Wrong. Took 8 months to sell. When did sell paid off HELOC with proceeds so it did work as planned but 8 months of paying the other mortgage sucked. Sell. Rent. Buy. Next time
For sure.


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