Posted on: 21st Feb, 2007 06:16 am
Hi there, we have a current mortgage and would like to purchase a second home and sell this house. How does this work; will the bank give us a second loan?
You can get a mortgage for the purchase of the second home and lending standards for primary and secondary homes are nearly the same. First decide about the price range in which you would like to purchase the other home and then approach lenders to inquire about the rates.
Gonzalez
Gonzalez
If you are planning selling this house then do not take a second loan. The rate for the second loan will be relatively higher.
In case the value of the house has increased reasonably then you will be able to pay off the balance on your existing mortgage from the proceeds of the sale.
Katy
In case the value of the house has increased reasonably then you will be able to pay off the balance on your existing mortgage from the proceeds of the sale.
Katy
hi monica,
welcome to our forums.
a second mortgage against the same property which already has a first mortgage on it may be costly as the interest rates are higher. but a second loan, that is, the loan against another property may not be that expensive. it will depend upon the lender you deal with.
there are a number of lenders offering various types of loan program at different rates, fees and costs. it's your preference and affordability to manage a loan that will determine the type of loan offer you get. moreover, if you have a good credit score and payment history, you will e able to qualify for better rates of interest.
first of all, you need to talk to the lender so that he allows you to sell the property. you can then pay off the loan with the sale proceeds and if possible, keep a certain percentage of the proceeds towards the down payment of the new home.
the bank or any lender will be able to provide you with a loan offer at a favorable rate provided you have been paying for the current loan regularly. by the way, what's your score? i mean what's the range?
hope to hear from you soon.
caron.
welcome to our forums.
a second mortgage against the same property which already has a first mortgage on it may be costly as the interest rates are higher. but a second loan, that is, the loan against another property may not be that expensive. it will depend upon the lender you deal with.
there are a number of lenders offering various types of loan program at different rates, fees and costs. it's your preference and affordability to manage a loan that will determine the type of loan offer you get. moreover, if you have a good credit score and payment history, you will e able to qualify for better rates of interest.
first of all, you need to talk to the lender so that he allows you to sell the property. you can then pay off the loan with the sale proceeds and if possible, keep a certain percentage of the proceeds towards the down payment of the new home.
the bank or any lender will be able to provide you with a loan offer at a favorable rate provided you have been paying for the current loan regularly. by the way, what's your score? i mean what's the range?
hope to hear from you soon.
caron.