Currently have a home loan with 80k remaining at around 4% interest rate that is valued at 350k. Would it make sense to get a second mortgage for the difference to buy a second home? Is this feasible? Any drawbacks to consider?
(The first home will remain with family who will take over the mortgage but my name will remain. The second home will be my primary residence.)
Second mortgage to buy a second home?
byu/AggressivelyAwkward inRealEstate
Posted by AggressivelyAwkward
4 Comments
Is it gong to be a down payment? What’s the interest on the second mortgage? I feel there needs to be more details to really help. I theory, can you do it…yes…will it be a better rate than a primary mortgage, doubtful. Can you family buy your house then you can purchase your new home as primary and get a better rate?
HELOCs are the cheapest way to borrow money right now. For what it is
You might do better getting a stand alone mortgage and not getting a second in your existing home
1990.We were living in house1 we bought in 1986 and we paid $107k for. I had been unemployed for a year. Got a job offer 1500 kms away. Old house was then worth $150k. Leveraged equity on house 1 for down payment on house 2 which we bought for $144k with $30 k down. Rented out house 1 and lived in house 2 for work. Sold house 1 for $276k in 2000 and paid off mortgage on house 2. Still live in house 2.