Home Buying in Indianapolis>Question Details

Sonya Broshe…, Home Buyer in Washington, PA

Can I get a mortgage on a house we want to buy and put my existing home mortgage in with new mortgage on other home and pay off that home?

Asked by Sonya Broshear, Washington, PA Fri Mar 21, 2014

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Lenders will not exceed the purchase price of your new purchase and let you payoff your old mortgage.

Can you put your old mortgage in with your new that depends on two things,

is there enough equity in your new purchase to allow you to add your existing mortgage to it without exceeding the loan ratio's. (But in this scenario it means you would have the excess cash to purchase the new home)
2ndly do you have enough income to allow you to get that mortgage while you still have the mortgage on your existing home (until you pay it off)



I have done this myself where I have a primary home and a vacation home, plenty of equity in both. Took out a higher home equity line on my vacation home and paid off my debt on my primary residence. It did not change what I owed it changed who I owed it to.
0 votes Thank Flag Link Sat Mar 22, 2014
Hi Sonya,

Thanks for your question. It seems like you are in a difficult situation, which I love to help people work through!

You are not able to have 2 homes in one mortgage. However, you can consider the 2 following options:

1) Sell your current home. This is the simplest, but not always the easiest to get done, depending on equity, local market etc. If this is not an option you can:

2) Rent out your current home. There are some requirements that you would have to meet, and likely reserves you would need to put down.

To advise you more personally, give me a call, or send me an email, and we can find a solution to the problems you are facing.


Thank you.


Avery Garrett, Realtor
317-721-2274
soldbyavery@gmail.com
Read my reviews, search for homes (including bank-owned foreclosures), or find out what your home is worth at http://www.SoldByAvery.net
Web Reference: http://www.soldbyavery.net
0 votes Thank Flag Link Sat Mar 22, 2014
Before I say no help me to understand the math. What is the value of the existing home and the balance of the mortgage? What is the purchase price of the new home and how much money do you have for the down payment on the new home? If you share this info I may be able to suggest an option if one exists. If you prefer to email me this info vs post it feel free to do so at mrolsky@c21scheetz .com
0 votes Thank Flag Link Fri Mar 21, 2014
Unfortunately, it does not work that way. You will need to have two separate mortgages for your situation. You will also need strong finances so you can support two mortgages. The next step for you is to speak with a lender. The best thing for you to do is to speak with a knowledgeable lender like myself to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Fri Mar 21, 2014
You will need to pay off one mortgage, unless you can manage to qualify for both mortgages with your financial situation. Best of luck!
0 votes Thank Flag Link Fri Mar 21, 2014
No.

Mortgage lenders will only let you borrow money secured by the property you are purchasing - the current mortgage is tied to your current home and the new mortgage will be tied to the new home.

In most cases, this question comes about because you can't quite sell the current home for enough to pay off the mortgage, or you don't have enough equity in the home to put it up for a quick sale.

If this is the case, then in order to buy the new home you would need to be able to qualify for BOTH mortgages. Then once you are in the new home you can attempt to rent or sell the old home.

Best of luck!
0 votes Thank Flag Link Fri Mar 21, 2014
You will have to keep the two mortgages separate as each one is taking security interest in respective homes. If you are unhappy with the rate and terms of mortgage that you currently have you can refinance that mortgage. Talk to a mortgage professional licensed to do business in the state where the home is.
Thanks

Sanjeev Ahuja, NMLS #148731
Mortgage Broker
Home Funding LLC
110 Jericho Turnpike Ste 214
Floral Park, NY 11001
Direct Phone 917-517-2552
NYS Registered Mortgage Broker, Dept of Financial Services, Loans arranged through third parties (NMLS # 885573)
0 votes Thank Flag Link Fri Mar 21, 2014
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