Posted on: 04th May, 2011 08:06 am
Here is the deal. My parents own a home which the are selling. The sales price should be 375K or so. They have a 27K home equity line of credit. Net proceeds from the sale should be around 320-325K after the home equity is paid off. They are looking to buy a home that costs 375-400K. Therefore they will need a loan for 55-80K. Does this need to be a full mortgage with all the inherent hassle or is an equity line available? They have good income (10,000+/mo), good assets, credit scores north of 775 and never any credit or mortgage problems.
Thanks,
Howard
Thanks,
Howard
You can obtain which ever type of loan that you are qualified for. It depends on your personal preference and goals with the property. On a credit line, it is revolving so they can borrow more when needed. They do have a higher rate and long term costs. If you are looking to payoff the house and be able to retire, then a fixed mortgage would be best. On a loan of that size, a 10yr fix with enough credit/income, could get a rate in 3-4% range. The typical costs are your closing third party which is title, escrow, appraisal and prepaid interest. Which ever loan you chose, you will need to pay these costs. Most 1st mortgages, will not charge origination. Good luck
Welcome ce,
As far as I can understand, it will be a full interest loan. With a good income and a good credit score, you won't face any issues in getting a mortgage.
As far as I can understand, it will be a full interest loan. With a good income and a good credit score, you won't face any issues in getting a mortgage.