| Posted By |
Message |
MommyTeffi
Yummy!!!
Member since 2/06 1827 total posts
Name:
|
Using a HELOC to purchase a new home?
Has anyone used a HELOC to purchase a new home? We are in the process of putting our 2-Family house in Queens on the market. We anticipate making a decent profit since we bought this house for a very low price. We have some savings to use, as a down payment on our next home but would like a little more of a cushion. If you used a HELOC and paid it off quickly, what fees did you occur? I would appreciate any feedback since I’m in the early research stage.
Thanks
|
Posted 5/15/06 10:33 PM  |
| |
|
Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
kriss2c
LIF Toddler
Member since 5/05 416 total posts
Name:
Kristen
|
Re: Using a HELOC to purchase a new home?
We did an 80/10/10 on our first house (mortgage for 80%, 10% down, 10% HELOC)
We did not incur any penalties for paying it off early. Always ask first, but usually early payment terms are stated at the closing.
Message edited 5/16/2006 2:57:40 PM.
|
| Posted 5/16/06 2:57 PM |
| |
|
anon
where's winter?
Member since 11/05 2209 total posts
Name:
|
Re: Using a HELOC to purchase a new home?
Posted by kriss2c
We did an 80/10/10 on our first house (mortgage for 80%, 10% down, 10% HELOC)
We did not incur any penalties for paying it off early. Always ask first, but usually early payment terms are stated at the closing.
this is what we are doing as well.
we have been in our house 1 year and i have been paying an extra $1000 towards principle each month. this will now come to a halt with  to arrive in a few weeks, but we plan to pay it off asap and then use the line of credit to upgrade the kitchen and potentially add a bath...
ETA: i think i misunderstood the question!
Message edited 5/16/2006 3:43:29 PM.
|
| Posted 5/16/06 3:03 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: Using a HELOC to purchase a new home?
You have to take the HELOC out before you put your home on the market.
I think one of the conditions of taking out any kind of mortgage on your home is that you can't have it on the market. Once the loan is closed you can list it.
|
| Posted 5/16/06 3:19 PM |
| |
|
Tah-wee-ZAH
Kisses
Member since 5/05 15952 total posts
Name:
|
Re: Using a HELOC to purchase a new home?
Posted by MommyTeffi
Has anyone used a HELOC to purchase a new home? We are in the process of putting our 2-Family house in Queens on the market. We anticipate making a decent profit since we bought this house for a very low price. We have some savings to use, as a down payment on our next home but would like a little more of a cushion. If you used a HELOC and paid it off quickly, what fees did you occur? I would appreciate any feedback since I’m in the early research stage.
Thanks
We did this last August/Sept.. We found a house, took savings for the down payment, then a HELOC for 180K from WAMU to put down at closing (DH originally bought the house in 1998 for only 150K). We wanted to make an offer with very solid terms. There was a $500 penalty for paying it off early but we got a better interest rate for the time we used it so it was worth it.
Just so you know you can't tell the bank this is why you are doing it. Yes, I know everyone does it but technically no one is supposed to. Also, you have to do this BEFORE you put your house on the market. The bank's appraisers will come by to check to do an exterior inspection to make sure that there really is a house at that address.
|
| Posted 5/16/06 4:09 PM |
| |
|
DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
|
Re: Using a HELOC to purchase a new home?
Posted by Blu-ize
You have to take the HELOC out before you put your home on the market.
I think one of the conditions of taking out any kind of mortgage on your home is that you can't have it on the market. Once the loan is closed you can list it.
YES! VERY IMPORTANT. Do NOT tell the bank you are getting the HELOC from that you are selling! And don't put it on the market till you have the cash in your hands.
|
| Posted 5/16/06 4:39 PM |
| |
|
