Home Buying in Burlington>Question Details

Will, Other/Just Looking in Arlington, MA

I currently own a condo, with about $100k on a value of $150k. I'd like to refinance my current mortgage, purchase a new home, move into that

Asked by Will, Arlington, MA Tue May 25, 2010

home, and then rent out my current place. What are some things to be aware of and to consider? I make about $86k gross yearly, with no debt, and excellent credit. How much do you think my second purchase can be? Thanks.

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Michael Cincotta’s answer
Hello -

It's true that a bit more information is required to nail the numbers down. You have good timing - rates are as low as they have ever been. To make your income go even further, we offer 10% down with no pmi. We also try to do no points/no cllosing cost financing whenever possible. Contact me anytime.

Mike Cincotta
Salem Five Bank
0 votes Thank Flag Link Tue May 25, 2010
William
Its tough to give you an accurate amount, because there are so many variables that go into determining the final value. I would be more than happy to talk to you. At no cost to you, I can give an accurate amount, after answering few questions.
0 votes Thank Flag Link Tue May 25, 2010
about 41% of your income can go towards consumer debt (housing, credit cards, car payments and student loans) That would also include the mortgage on your current condo.

There are so many variables involved it would be best to talk to a loan officer. There is a gentleman I recommend in Burlington. Barry Thomas- American Foundation Mortgage Bank- 781- 272-4663. Barry will make sure you move forward with a full understanding of the process.
Web Reference: http://www.thehousewiz.com
0 votes Thank Flag Link Tue May 25, 2010
Sorry. Condo is valued at ~$150k, principal on my current 15-year mortgage is ~$100k. I'd like to refinance it to a 30 year to get the payments down so it'd be easier to break even or make a profit on renting. If I'd need to cash out a bit (like say 10k or 15k) then I'd do that too.

And no debt means no credit card, no car payments, no school loans, no alimony, no debt whatsoever...

Thanks.
0 votes Thank Flag Link Tue May 25, 2010
Also what would your deposit be on yor purchase? You may need to have a lease lined up to rent the condo in order to be qualified for the new purchase. So many factors affect this question you really need to sit down with a qualified mortgage professional. If you would like some names you can call me at 508-277-2032
Web Reference: http://www.mdmrealtyinc.com
0 votes Thank Flag Link Tue May 25, 2010
Your question isn't totally clear. Are you saying that your condo is worth $150K, that you have a loan for $100K, and that you'd like to do a (cash-out or rate/terms) refinance? If so, then did you also mean that you have no CREDIT CARD debt?
0 votes Thank Flag Link Tue May 25, 2010
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