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How do I use equity from my current home to purchase a bigger home?

by james_33503 from Montezuma, North Carolina. Dec 28th 2016 Reply


Ralph Richard Guertin (ralph@absolutelowrates.com)
#135 ranked lender in Florida - 635 contributions

Hi, you can use a home equity loan or do a cashout refinance, if you can handle the debt to income ratio's of carrying both homes with new debt. Good Luck, unfortunately we don't lend in NC

Dec 28th 2016
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Larry Gray (lgray_312_247)
#2 ranked lender in California - 1,033 contributions

Often people secure a home equity line of credit and wait to apply whatever amount from it you need towards your down payment/lending fees. If you have an idea what the maximum amount is you wish to spend on the new purchase and the amount of money you will need, then you can might refinance appropriately. If you are going to rent the home then regulations require you to refinance as an investment property. If you plan to sell the current home as soon as you can, you want to see if you qualify with the two mortgages or make sure you close on the property before you purchase the new one. You can purchase the new property contingent to selling your current home if the sellers agree to that. You really ought to get qualified with a North Carolina mortgage broker/banker even if you do not plan to buy right away. It will be helpful in making the best decision for you, in the home buying and loan scenarios.

Dec 29th 2016
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Lorne Harvey (lorneharvey)
#2 ranked lender in Washington - 417 contributions

Visit with a mortgage loan originator about a cash-out refinance.

Dec 29th 2016
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,323 contributions

The best thing for most people is to put your existing home on the market (assuming you are planning to sell), and closing on the sale and purchase the same day. This is what happens the vast majority of the time. But if the existing house is not sold, sure, you can take out a home equity loan on that house to use for down payment, or to buy a different house, IF YOU QUALIFY. You would need to qualify for the new equity loan, any existing loan on the current home, and the new payment on the new home. This gets tough for many people, but some can pull it off. Talk to a local mortgage broker in your area for assistance on your specific situation.

Dec 29th 2016
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