I have a 2 year fixed mortgage for 92K in it i can sell my house an buy another one during that time, i just need to know can the house be a cheaper one? or does it have to be 92K and above?
Thanks
2007-12-01 08:02:10 · 9 answers · asked by Rianna R 2 in Business & Finance ➔ Renting & Real Estate
i know i can sell after the 2 years and buy a cheaper one, but can i do that during the fixed term? My house is now worth 125K but me and my fella are splitting up and i cant afford to keep it on but wanna transfer it to a cheaper house i can afford. I just didnt know if i could do it for less than 92K.
2007-12-01 09:46:11 · update #1
If you reduce the mortgage, you might get hit for early repayment charges on the amount the mortgage is reduced by. You'd really need to ask your lender, the charges they impose vary from lender to lender.
2007-12-01 08:11:29 · answer #1 · answered by Ahwell 7 · 0⤊ 0⤋
What the hell? I don't know what you're saying.
A mortgage is nothing but a loan from the bank. If your mortgage is 92K, you better sell the house for more than 92K so you have enough to pay the bank or be ready to pull the money out of your pocket. If the house is worth more than 92K, then you have that extra money to buy whatever you want.
Ask what you really want to ask, going around and making up facts for questions that you have no idea about make it hard to answer you.
2007-12-01 16:14:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It has been my experience that underwriter's tend to look at this particular scenario with a jaundice eye. What the underwriter finds unbelievable is the fact that you are leaving a higher priced home for a lower priced one and you will owner occupy the second home. I know for a fact some have purchased homes of lesser value than their current residence, as owner occupied, only to rent the property after the closing. This is fraud.
But, in this current wacky market a body could run across a whale of a deal that is lesser in value especially, if it is a foreclosure. If the new property is indeed more spacious, in a better neighborhood....etc... a letter to the underwriter pointing out these items should be all that is needed to get over this hump.
2007-12-01 16:19:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Either, your mortgage has nothing to do with what homes you buy or sell. You may have a prepayment penalty but the value of your new home has nothing to do with it.
You may be thinking of old tax laws where you needed to buy a more expensive home within to years to defer taxes. I you sell your current home and have owned and lived in it more than two years out of the last 5 there is no tax on the first 250K of gain or 500K gain for a couple. If you didn't you may have capital gains taxes to pay. They would be 15% if you are in a high tax bracket, 5% in a low bracket.
Mostly worry about the prepayment penalty.
2007-12-01 16:06:06 · answer #4 · answered by shipwreck 7 · 0⤊ 0⤋
Sure it can be cheaper. The problem is if it is higher than 92K then you may have to qualify for additional mortgage amount. But cheaper is no problem.
2007-12-01 16:07:48 · answer #5 · answered by Rector 2 · 0⤊ 0⤋
you can buy a house less for than the amount that the mortgage company have allowed you.
2007-12-01 16:13:22 · answer #6 · answered by magiclady2007 6 · 0⤊ 0⤋
either one ,just make sure if theres a balance, you can pay for it, example if your house sells for less than what you owe.unless you remortgage the balance into new home if allowable by lender.
2007-12-01 16:12:59 · answer #7 · answered by crazy b 3 · 0⤊ 0⤋
You can buy a cheaper house, no problem.
2007-12-01 16:10:06 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It can be any price you please. No mortgage contract can specify what you do with respect to property not liened by the mortgage.
2007-12-01 16:07:32 · answer #9 · answered by Anonymous · 0⤊ 0⤋