2007-06-27 02:58:27 · 7 answers · asked by LaRita 1 in Business & Finance ➔ Renting & Real Estate
No, as long as you are not selling the current home. If you sell the current home, both loans that are secured by the house must be paid off in full before the title can transfer.
2007-06-27 03:03:37 · answer #1 · answered by halestrm 6 · 0⤊ 0⤋
If you sell the home, absolutely.
If you retain the home as a rental property and buy another home, there's a chance that if you have a home equity line of credit (HELOC), they could freeze it for any future withdrawals. In fact, there's a slim chance they might be able to call the loan due if the property is no longer your primary residence.
The only way to know for sure is to read your closing documents, the note and mortgage. Or call the bank and find out.
2007-06-27 05:27:05 · answer #2 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
No. The two are unrelated. What determines your ability to buy another home are things like equity, credit score, income, debt ratio and the like. The income from the second home can be used to offset the second loan. People buy three, four or whatever number of homes without paying off the primary loan.
2007-06-27 03:06:57 · answer #3 · answered by Toodeemo 7 · 0⤊ 0⤋
If you are selling the home that is the collateral for the home equity loan, then it must be paid to clear the title of the home at sale.
The home equity loan will be settled as part of your closing transaction when you sell your existing home.
Whether you can buy another home before selling yours is contingent on your debt ratio and credit-worthiness. If you have a low ratio and strong credit, you have more options than a person with less credit and higher ratio.
2007-06-27 03:07:14 · answer #4 · answered by cnsdubie 6 · 0⤊ 0⤋
It depends upon what you want to do.
If you sell the home that has the loan, the loans (all) have to be satisfied so you can transfer the deed to the new owner.
If you do not sell the home AND if you qualify for the new purchase's mortgage then you do not. Sometimes a mortgage company provides a conditional mortgage - meaning that you have to satisfy the previous mortgage (first and second) to qualify for the new.
2007-06-27 03:08:28 · answer #5 · answered by GTB 7 · 0⤊ 0⤋
If you're selling the home that you've taken the HELOC (home equity line of credit) loan on, then yes!
2007-06-27 03:01:33 · answer #6 · answered by Anonymous · 0⤊ 0⤋
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2017-01-23 06:11:22 · answer #7 · answered by ? 3 · 0⤊ 0⤋