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Wants New House |
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I own a house now, plus a 2nd mortgage. I want to move to a nicer neighborhood with better schools, etc... If I sell my present home at the suggested price my realtor advises, I will come out still owing the bank $5,000.-$10,000 that I do not have. The house I want to buy has dropped in price so much that it is within my price range. Do I go $5-10,000 in debt to save myself money on the future house or do I wait a year and pay down my present mortgage? |
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I'm afraid what you're asking me is pretty much a personal decision. But I wonder whether any extra debt would affect your ability to get a mortgage on the new house. Lenders are tightening up their requirements these days, to head off future problems like the one you find yourself faced with now.
How much down payment would you have to put on the next house? on your closing costs? It doesn't sound as if you have much cash available. Before you do anything, better consult a mortgage broker, or perhaps more than one, to find out if you'd be able to buy the next place. |
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Edith
Originally published on March 26, 2008 |
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