Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Can you still get a "bridge loan" after the housing crash? Any other ideas on this situation?
We are about to accept an offer on a home we are buying. We currently own a home with a fairly large equity (about $300K). We have an existing Home Equity Line of Credit for $75K on our current home, and excellent credit.
The loan officer we're dealing with suggested we use the $75K HELOC plus $20K in personal funds for a down payment, and take out a 3/1 ARM to close the deal until our current home sells. When it does sell, he says, we can then get a 30 year fixed on the new home,
That doesn't sound right to me. It is cumbersome, and it requires closing costs on TWO loans. He says he'll "work with us" on the closing costs on the 30 year mortgage, but who knows what that means (nothing if not in writing, of course)? And there will be extra costs no matter how he "works with us."
Does anyone have any suggestions about a better way to do this? A bridge loan? A higher HELOC on this property? Any other ideas? I'd really appreciate any help. Thanks!
2 Answers
- Anonymous1 decade agoFavorite Answer
Hi Don,
There is no reason to take a 3/1 arm now and do all of the other stuff UNLESS your loan officer is having difficulty getting you qualified/approved for the new loan while still carrying your current mortgage payment.
You're right, no matter how much he "works" with you there will still be additional costs and there is no way to know what rates will be when you get to that point.
What is the purchase price of the new home?
I suggest you get another opinion from a mortgage banker/broker.
Source(s): I'm a mortgage banker/broker http://www.bestflatratemortgage.com/ - LilyLv 71 decade ago
It really depends on what market you are in. If you are in a stable market maybe. It sounds like this loan officer is about to making a killing on this deal by getting you to take out two loans. The best thing to do is get a second opinion by talking to a mortgage broker. I am guessing the loan officer is at a bank you already do business with.
I live in Florida and there is no way my bank would put that through right now.
