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TLDR/BLUF: If you buy before selling, do you put down the 20% to close and then refinance when you get the "Big" check from selling the other house?
Sorry, I did a quick search but it's so clunky, I apologize if I missed this as I'm sure the discussion happens. I found some examples, but not really sure they are the same situation.
After adding a few kids to our family, we're upsizing. This feels normal but is also kind of confusing. We found a house and have a closing date (mid august). The new house is a relocation, so they could/would not accept a "contingency" that we sell our house first. So we're planning to put our house up for sale ASAP, but understand even if it's a faster close, it's unlikely we'd have a check for the closing.
For starters, we are a fairly debt averse couple with a prioritize paying off our home (especially at current interest rates). I understand there are other financial options that might make more sense for other folks, but that's not our plan right now.
We have enough for the down payment, but we'll be getting crushed with a higher rate and bigger loan. Once we sell our current house, we can put that money towards the new house, and re-fi into a smaller 15 year loan with a better interest rate and a lower payment.
I'm wondering if that's the "best" option, or what other options are. I've just assumed that we put down the 20%, close on the house, move semi-leisurely, then when we sell our house we can pay that towards the house and refinance with the lower amount owed and likely with a lower rate. What are the other realistic options? We have enough money to make the new down payment, but we're not interested in keeping two houses and renting or anything like that.
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Mortgage/refi questions Buying before selling existing house. (NC)
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Sorry, I did a quick search but it's so clunky, I apologize if I missed this as I'm sure the discussion happens. I found some examples, but not really sure they are the same situation.
After adding a few kids to our family, we're upsizing. This feels normal but is also kind of confusing. We found a house and have a closing date (mid august). The new house is a relocation, so they could/would not accept a "contingency" that we sell our house first. So we're planning to put our house up for sale ASAP, but understand even if it's a faster close, it's unlikely we'd have a check for the closing.
For starters, we are a fairly debt averse couple with a prioritize paying off our home (especially at current interest rates). I understand there are other financial options that might make more sense for other folks, but that's not our plan right now.
We have enough for the down payment, but we'll be getting crushed with a higher rate and bigger loan. Once we sell our current house, we can put that money towards the new house, and re-fi into a smaller 15 year loan with a better interest rate and a lower payment.
I'm wondering if that's the "best" option, or what other options are. I've just assumed that we put down the 20%, close on the house, move semi-leisurely, then when we sell our house we can pay that towards the house and refinance with the lower amount owed and likely with a lower rate. What are the other realistic options? We have enough money to make the new down payment, but we're not interested in keeping two houses and renting or anything like that.
submitted by /u/user_1729
[link] [comments]
Mortgage/refi questions Buying before selling existing house. (NC)
Continue reading...