financial probs mortgage to high
2007-01-16 05:54:09 · 7 answers · asked by leslie740855 1 in Business & Finance ➔ Renting & Real Estate
As a general rule, I would say don't do this. You are on the so-called mortgage ladder now and if you get off, who knows if/when you will be able to get back on. Also, what would happen to the property if you fell behind in rent? Is your tenancy agreement indefinite? Will you be forced to move out at some stage in the future?
Can you see if you can change your mortgage to a different provider, one where there is a fixed interest rate? This could lower your payments.
Have you thought about trimming off any extra payments you may be making - any unnecessary life insurance, accident insurance, income protection cover, transferring your car insurance to a cheaper company, paying your utilities by direct debit, getting a cable/landline/broadband all-in-one deal? These could save you enough money to put towards the mortgage.
Can you move to a smaller house or out of the area a bit to a cheaper location?
Can you perhaps rent a room out in your house? Or do some overtime? Or get a temporary part-time job? Ask other family members to contribute to the household income (sorry, I don't know your circumstances).
If you have credit card debt, can you swap them to a no interest deal to reduce your monthly repayments?
There are a number of things you could do but I don't think I would say selling your hard earned house and then renting it back is a good idea in the long term.
2007-01-16 06:06:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I want to buy another House where is it?
To answer your question would take more than a few types here because information is needed, but let me say this.
If you can sale the house and gain your better off because if you rent your subject to pay renters tax and that is a bummer and a new law passed in Georgia which doesn't make renters feel so hot about renting.
I sold my house instead of renting and I had the dame option as you sale or rent. I sold, less hassle and bought again .
So that is my suggestion to you and on the other hand some people rent out a bedroom in the house to help out. My friedn just bought a house in Alabama for $250,000 a real nice House 4 bed rooms 2 full baths.
He is renting out three of the rooms for $160.00 a month to his comrads. Smart move.
HIs payments are over $1,000.00 a month. He is breezing right along right now and doing good.
He is single by the way so that does make a difference. Me personally;I would have not bought a house that high based on renting out the rooms, because he could get stuck with the big one even though, he was approved, because he just bought a New Truck now he is in debt;.
2007-01-16 14:13:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If there is any way to avoid it, then do so. Try to refinance, the interest rates have gone down. But chances are your rent is going to be more than the mortgage and you're not going to gain any equity by renting. You're basically throwing your money away. Do whatever you can to hold on to what could be one of the best investments of your life.
2007-01-16 14:05:20 · answer #3 · answered by Jilli Bean 5 · 0⤊ 0⤋
Very viable way to stay in the house. 2 MAJOR items here. Whoever you sell it to, make sure when you do the rental contract that you do a lease to own, with the option to buy in one year. Secondly, make EVERY SINGLE RENT PAYMENT ON TIME!!!! They can evict you if you don't. And pay with personal check and keep copies of those cancelled checks, the bank will ask for them when you go to repurchase the house.
2007-01-16 14:05:03 · answer #4 · answered by Joe L 3 · 0⤊ 0⤋
To price your rental, surf around craigslist and see what places in your area are going for. As for selling make sure to take into account any tax implications so I would could talk to a tax account that specializes in real estate and capital gains laws. Create a spreadsheet that shows your annual rental profit verse the amount that you could sell it for, taxes, and what your new mortgage is.
2007-01-16 14:03:58 · answer #5 · answered by DJ Ksar 2 · 0⤊ 1⤋
usually these companies that buy your house offer you a price 20% under value. and i think the ones that buy it from you and let you live rent free offer a pittance. there is no way they are going to be out of pocket!
2007-01-16 14:05:19 · answer #6 · answered by abutterfly2k2 2 · 0⤊ 0⤋
only if you are really desperate,, you will not get the market value for it and you will only then be a tenant,,unless you have a good contract to say you can live there for life,,but if you move ???
you will have nothing left
2007-01-16 14:05:11 · answer #7 · answered by oscar 4 · 0⤊ 0⤋