sell house / buy house
"xparafile" wrote...
I need to buy another house, using the money I will have, upon selling
my present house, (mortgage is paid off). Is there a (chronological)
scenario, where I could go from one house, to the next, without
renting for a while? The only money I have toward another house, is
what I will get for my present house.
If you have no current mortgage, you can either:
apply for 100% financing for a new house, then pay off as much as you can
with the proceeds of the current house
apply for a Home Equity Loan or Home Equity Line of Credit on the current
house, use that for your down payment on the new house, then pay off the HE loan
when you sell the current house.
The second option may be cleaner, since you can probably more easily find good
rates for the HE loan and a less-than-100% financing on the new house. Also,
getting a HE loan on a house you own free and clear should be a snap, and cost
little or nothing.
Just look for early payoff penalties on any loans.
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