don't say get a job i have one
2006-11-13 13:19:02 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You are doing what we call "trading up".
As long as you have enough equity in the $200,000 house to provide a decent down payment on the $250,000 house, say 20%, or $50,000, you can buy the more expensive house.
Since you have a job, just be sure to budget for the extra mortgage payment.
If you owned the house outright and put all that money into the $250,000 house, minus expenses, your should only have a loan for about 55 to 60 thousand, should only be a few hundred dollars a months mortgage payment, depending on your interest and how you factor in property tax.
This is not a large upgrade, most any bank will work with this.
2006-11-13 13:27:05 · answer #1 · answered by Action 4 · 0⤊ 0⤋
Well lets say you bough that $200,000 house for $150,000 10 yrs ago. You've lived in that house for 10 yrs and have been paying monthly house payments on the loan value.
Then you go to sell the house today and its value is $200,000. Well for 10 yrs you have been making payments on it and lets just say you now only owe $100,000 on the original $150,000 loan. So now you have a positive equity of $100,000.
You now take that $100,000 and put it as a down payment on the new $250,000 home and once again, start making monthly house payments on the rest of the loan value or on $150,000.
Less than 1% of 1% actually pay cash for a home, everyone else takes out a 15 or 30 yr loan from the bank to pay for it.
2006-11-13 21:22:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Well, how much equity do you have already in the $200 000 house? Enough so that the mortgage on the two properties is almost the same, despite their value?
(ie- if you had a full mortgage of $200 000, but have already paid off $50 000 of that, once you sell your house for $200 000, you would stsill only need a $200 000 mortage for the $250 000 house----the $50 000 you'll have from the equity you're getting back from your house and the original $200 000 loan you had in the first place.
2006-11-13 21:23:27 · answer #3 · answered by Natalie M 3 · 0⤊ 0⤋
Get a loan to make up the difference in the purchase price. Are you seriously asking this question????
2006-11-13 21:37:02 · answer #4 · answered by miss m 4 · 0⤊ 0⤋
Get a loan.
2006-11-13 21:20:47 · answer #5 · answered by Habester 3 · 0⤊ 0⤋
Isn't that what mortgages are for?
2006-11-13 21:20:53 · answer #6 · answered by ? 3 · 0⤊ 0⤋
MORTGAGE, LOAN, FINANCE
2006-11-13 21:21:22 · answer #7 · answered by Anonymous · 0⤊ 0⤋
you get a mortage
2006-11-13 21:21:44 · answer #8 · answered by Bryn L 2 · 0⤊ 0⤋