I want to take second mortgage to buy a new home?

JOHN V asked:


I Want to Buy New Home Good idea to take a second mortgage.
Ihave a home already paid off

Paul

Tags: Second Mortgage

This entry was posted on Wednesday, July 8th, 2009 at 6:44 am and is filed under Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

3 Responses to “I want to take second mortgage to buy a new home?”

1. golferwhoworks Says:
   July 11th, 2009 at 5:47 am

   Karl

   If you have a renter in place for the home then yes you can take out a first mortgage on it for the down payment etc. Done all the time

2. Ross Says:
   July 13th, 2009 at 12:15 pm

   Leslie

   Yes!!!!! unless you can’t afford it or qualify for the loan. I would use one as a rental. When you chose a home to use as a rental you should take different things into account than if you plan on living in it.

   Your rental should be as low maintenance as possible. Do not expect a renter to maintain a home like you would as the owner. Also do your research and make sure it is rent-able.

3. chatsplas@sbcglobal.net Says:
   July 15th, 2009 at 6:59 pm

   Cheryl

   If your home is already paid off and has no mortgage, you could take a HELOC, but not a 2nd mortgage because it would be the first mortgage on your home. Yes, you could use the loan proceeds to buy a new home.
   BUT, why not just get a mortgage to buy the new home? What’s the advantage to you of doing it this way? First mtgs are usually lower rates and fixed, whereas HELOCs are generally adjustable. So over the long term you don’t know WHAT you’re paying.