Mortgage and Refinancing Information Channel:

We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
 Please check back frequently as new topics are added and current topics are updated daily.

Buying a Home? Don't Get Saddled with Two Mortgage Payments

I have a lot of friends and family who are currently buying houses. Many of them have had a problem with timing. In other words, they buy a house and sign a contract that says that they have to pay the seller in 30 days. (Incidentally, it's never wise to go less than 45 days.) Now, it takes two to three weeks to sell their house, and they sign a 30-45 day contract, so they don't get their money in time to help finance the down payment for the house they are buying. The answer to this problem is simple. Get a bridge loan.

Now, in order to make this strategy work, you need a considerable amount of equity in your current home. Let's say, for example, you are selling a $200,000 home, and you owe $110,000. You have $90,000 in equity (200,000 value minus your debt of 110,000). A bridge loan uses the equity in your home to "bridge" the gap between the sale of your home and the purchase of your new home.

Here's how it works. A bank will loan you 80 percent of the value of your current home, or $160,000 in our example (200k times 80% is 160,000). $110,000 will go toward paying off your current lender, the one you owe $110,000. The remaining $50,000 is yours to use for down payment money on your new purchase and moving expenses, or for any reason you like. The beauty of these loans is that they are treated like home equity lines by the lender. In other words, you pay interest-only on the loan (probably 4-6 percent). So, if you had to pay 4 percent, interest-only on a $160,000 bridge loan, your payment would be $533.00 per month.

Wait one more minute, though. Another thing about bridge loans that makes them a truly marvelous tool is that your payments are deferred for up to 90 days. Imagine getting $160,000 from a lender to help you pay off a mortgage, put money down on a new house, and have left over expense money, and you don't make a single payment for three months. Wow, this is true power! So, in the long run, you may wind up never making a payment on your bridge loan. Outside of some small fees to get it, you are basically getting free money, because you will sell your house for $200,000 and pay off your bridge loan.

Meanwhile, you now have just your new first mortgage on your beautiful new home.

Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about this suspense thriller at http://www.sportsnovels.com Get his free mortgage finance course at http://www.winningthemortgagegame.com

MORE RESOURCES

used office furnishings-supplies-equipment-desks-cubicles-service-counters for sale in Akron Ohio   Die cast model cars for sale in Akron Ohio  
used cars for sale in Akron Ohio   unfurnished homes for rent in Akron Ohio

RELATED MORTGAGE AND REFINANCING ARTICLES: Stopping Foreclosures If you as an investor understand the process, you will be able to help more people! Foreclosure is tuff on folks it's all about losing! Your customer loses their home and the lender loses money! If you can get your focus going in the right direction, you can create a Win - Win scenario for all involved. Writer and philosopher Johann Wolfgang von Goethe said, "Kindness is the golden chain by which society is bound together. Flexible Mortgage Tips Outlined below are some useful flexible mortgage tips. The most prominent addition in recent years to the mortgage industry has been the flexible mortgage. Is an ARM Right For You? Let's start by taking a look at 7 key elements of an adjustable rate mortgage:1) ARM defined: While a fixed rate loan is constant and never changes throughout the life of the loan, an adjustable rate mortgage changes periodically. The interest rate of an ARM goes up and down based on whatever external index it is tied to. Refinancing Your Home Mortgage - Get Up To 125% Cash From Your Homes Value With the low interest rates being offered by lenders today, now can be the perfect time to refinance your existing mortgage. Remember that you do not have to refinance your home through the same lender that provided your initial mortgage. Self Employed Mortgage Loans - A Survival Guide When you're self employed you have numerous advantages. As you are a free agent, you will write off every deduction you can on your tax return. Little Known Secret: Eliminate your Mortgage in 23 years or less! Wanna know a little secret? There is an ingenious method you can use, to pay off your 30 year fixed rate loan, in 23 years or less. It's straightforward, simple, and easy to understand. Reverse Mortgages - a Reversal of the Mortgage Process Mortgages have assumed a number of characters from the time of their inception. The traditional mortgages used to be of the repayment type. Guide to Interest Only Mortgages Here is a useful guide to interest only mortgages. An interest only mortgage is one where your regular payments only go to pay off the interest on the money you borrow. Mortgage Tips For The Frantic It is a curious fact of human nature that people will haggle over the price of an umbrella, but buy a house on impulse. We understand small amounts of money; we know what they can buy. Bad Credit Home Loan - Apply Online and Keep Your Credit Score as High as Possible If you have a poor or bad credit history with something in your past like a bankruptcy or a foreclosure, you know how difficult it can be when you try to get financing for a home mortgage purchase, refinance, home equity or second mortgage loan. Its important to be persistent in looking because there are home mortgage loans out there for people with bad credit. Home Equity Lines of Credit Vs. Other Conventional Loans When it comes to getting money, you have two basic options. If you are a homeowner you can choose to take out a home equity line or credit (HELOC), or you can take out a conventional loan. Choosing a Real Estate Agent Before you go looking at houses, you'll need to find a real estate agent. Hiring a real estate agent takes a little bit of time to do. No Fee Mortgages Coming Soon Buying a home, especially for the first time, can be a daunting experience. There are endless credit checks, bank checks, employment checks, appraisals and more paperwork than seems to make sense. Stock Market, Bonds, Deposit Account, Cash, Equities, Unit Trusts - Few, Just Few of the Ways of Sav Man has been known for continually simplifying things in his own interest. First he devised mortgages then several sub categories under it like buy to let mortgage, council right to buy, reverse mortgage. Understanding a UK Commercial Mortgage In many ways a commercial mortgage is just like a residential mortgage in that you pledge real property as collateral against a loan to either buy or refinance that property. You can also receive a commercial re-mortgage and use it as a line of credit for any business purpose. Home Buying - What Can You Afford? Okay, you've decided to buy a home and are trying to figure out what you can afford. Before you go home buying, you need to carefully consider what you can afford as far as a mortgage payment. Home Loans and Mortgages - Beware of Deed Theft Scam The average home in the United States has a value of $206,000, a record amount. Real estate prices have been rising throughout the country during the last five years, and homeowners have seen the value of their property skyrocket. Home Equity Loans - Are They Right For You? The bills are out of control and you need a new car. "Maybe we can get a new carpet and paint the house", you say to yourself. When is the Right Time to Refinance Your Mortgage? You've heard that interest rates are down and you think it could be time to refinance your existing mortgage, but the entire loan application process was so exhausting during the initial loan that you aren't sure it's worth the hassle. You could very well be right, but there are some things you can do to help decide whether it's time to refinance your mortgage. Home Mortgage Lenders - How to Find A Good Mortgage Broker Online Mortgage lenders have set up shop online, but they aren't all reputable mortgage brokers. To find a good mortgage lender you need to compare rates and research to find reputable companies.

HOME | SITE MAP © 2012 - 2024 All Rights Reserved Increase pagerank with HitsSurfer