Posted on: 29th Dec, 2010 04:51 pm
I'm currently living with a grandparent and have a right of first refusal to buy the home when he passes. I was wondering if it would be less expensive or even feasible to have him transfer the deed to me and get a home equity line ($240,000) to pay the heirs to his estate? Or would it be less expensive and easier to just get a fixed 30 yr mortgage when it is time to purchase the home? He owns the home now free and clear of any liens.
Hi kwjiii!
Welcome to forums!
As the property is free and clear, you can go for any of the options and cash in the equity that the property has. If your grandfather transfers the property to you know, he can do so by signing a quitclaim deed.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As the property is free and clear, you can go for any of the options and cash in the equity that the property has. If your grandfather transfers the property to you know, he can do so by signing a quitclaim deed.
Feel free to ask if you've further queries.
Sussane
A home equity line of credit wouldn't make sense for you, based on current fixed rate mortgage rates, I don't believe. There's an inherent risk in helocs, if oinly because they're variable in nature. Why not wait until the time comes? Is there a reason for your urgency?
Whoa, I'd stop for a minute. You have estate planning issues long before you have a mortgage planning issue.
First of all, a quitclaim deed isn't even remotely close to a full solution for this. Frankly, quitclaim gets used in this forum incorrectly about 90% of the time.
There are about 10 ways that you end up not owning that home if this isn't properly planned.
Do you know if there is a will in place?
What do you mean by "right of first refusal?" Is it documented?
As for that price...is that fair market? Is that the grandkid discount?
First of all, a quitclaim deed isn't even remotely close to a full solution for this. Frankly, quitclaim gets used in this forum incorrectly about 90% of the time.
There are about 10 ways that you end up not owning that home if this isn't properly planned.
Do you know if there is a will in place?
What do you mean by "right of first refusal?" Is it documented?
As for that price...is that fair market? Is that the grandkid discount?
Wow...did I say "oinly"?