My parents who are both deceased gave me the 1st option to purchase their home. I want to buy my sisters out and I want to know if it is better to get a new mortgage or can I borrow money from the equity in the house and pay them off. There is no mortgage on the home, I only pay taxes.
2006-11-21 16:24:49 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Find a company that offers low or no closing costs and get a mortgage....it is a lot lower interest rate and you can take it out for 15, 20, or 30 years to control the payment amount.
Mike
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2006-11-21 16:34:09 · answer #1 · answered by MN-Mike 4 · 0⤊ 0⤋
You need to talk to a couple bankers in town who offer home equity loans, and also a mortgage broker or two. What you need to compare is which is cheaper over the time you expect to be paying.
A typical first mortgage will have far more closing costs, but likely will have lower rates and easier qualifying. Depending on how much you owe to your sisters, and how much in payments you are willing to take on, you may need to do this to get a 30 year fixed rate at the lowest rates available.
However, you might be able to find a 25 or 30 year fixed equity loan, with zero closing costs. Might be a slightly higher rate, but a good loan officer can show you the total cost over time and see which is better.
Anything you can do to keep the term short will save you thousands in interest, so even taking a 20 year over a 25 or 30 year term is very cost-effective.
Get out and shop. Talk to a few people. Find someone who is honest and upfront. Eventually you will find the right person to help you.
2006-11-22 04:51:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Home equity loan is a mortgage w/o the closing costs
2006-11-22 02:40:12 · answer #3 · answered by pitt 1 · 0⤊ 2⤋
a mortgage is better. get a fixed rate so you have a fixed, unchanging payment. make it fit within your budget on the shortest term possible. but, remember, the interest you pay on it is usually 100% tax deductible, so its a great tax advantage too. if you can afford more than the minimum you can always pay extra to pay it off earlier. use this website below to calculate approximate payments. also, make sure you know your credit standing so you're an informed buyer.
2006-11-21 16:44:34 · answer #4 · answered by abcdgoodall 4 · 0⤊ 1⤋
The size of the loan needed will dictate your best choice. If it is a small amount you need, then an Equity Line could be sufficient. If you need 100k+ you may need a Fixed Rate Mortgage. If you need further assistance, or a quote, please contact me via my website http://www.SLarson.com/contact or email me directly at Steve@SLarson.com.
2006-11-22 07:16:33 · answer #5 · answered by Anonymous · 0⤊ 1⤋
look into a reverse mortgage.
2006-11-21 17:06:54 · answer #6 · answered by Morpheous 3 · 0⤊ 2⤋
have it appraised..borrow against it and pay them off..ask if they can wait a while..
2006-11-21 17:09:05 · answer #7 · answered by debbie2243 7 · 0⤊ 1⤋