Home Buying in Elk Grove>Question Details

selenay2k, Both Buyer and Seller in Babylon, NY

Is it possible to roll an existing mortgage into a new home purchase?

Asked by selenay2k, Babylon, NY Fri Jan 4, 2013

I own a house in NY, with a property value approx $277,000. The current amount left on my mortgage is $34,000. I am looking to move to NC and have found a property down there that has 2 homes on the property and is selling for $131,000. My thing is, I do not want two mortgages, and homesales are down, so I am wanting to rent out my NY home. My in-laws live literally right next door to the NY home, so I know they would keep an eye on it, and we have a close firend who lives around the corner that we could count on as well. I don't think refinancing my existing home is the answer because form what I've heard, the bank would want me to stay in the home for a certain number of years, and I am looking to move by the summer. Any ideas?

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You are welcome. If you wanted to sell your home, I'd meet with a few real estate agents to set up listing appointments, as they should come prepared with a "comparative market analysis" which would give a good idea on what your home could sell for. If one of those "buy for cash" companies who are willing to offer you something close, then it's something to consider. However if real estate in Suffolk County is doing anything like it is here in Southern California, then values/prices are going up, and you may want to hold off to see how your market plays out. If you'd like a 2nd opinion after speaking with Chase I'd be happy to help.

Shane Milne | Lending in all 50 states | NMLS #81195
1 vote Thank Flag Link Fri Jan 4, 2013
It is possible to get another mortgage on your existing home, either as an equity line or second mortgage, secured by the home in NY, It would then appear that the purchase of your home in NC is a 'cash purchase' because there is no loan secured on the home. OR you can obtain a purchase loan on the home in NC, more straight line and common. In that instance you would be obtaining a security against the new home as an owner occupied purchase.

Second liens against the home in NY would be looked at as a 'cash out refinance' loan and may carry a higher rate, There may also be tax consequences along the way. Talk to a loan officer of your intent, but whatever you do, be straightforward on your intentions. Penalties for fraud with lending activities is watched even closer these days.
1 vote Thank Flag Link Fri Jan 4, 2013
If you refinance your home in NY as a primary residence, you are correct that you will have to live it in for a year. However you can refinance your home in NY as an investment property and take cash out to purchase the home in NC - then there is no requirement to stay in the home after you refinance. The thing is, in NY the closing costs are a lot more than in NC, so it would most likely be more cost effective to finance the home in NC than to do a refinance in NY. However, if you buy the home in NC with cash (from the cash out on your NY property) then you may be able to get a better deal on it than if you were using financing.

But to answer your question in the subject, no you cannot roll your existing mortgage into a new home purchase. You could pay it off as part of the new home purchase, i.e. put a smaller amount down on the new purchase in NC and then use $34k of your own funds to pay off the mortgage in NY.

Shane Milne | Lending in all 50 states | NMLS #81195
1 vote Thank Flag Link Fri Jan 4, 2013
The old house can't be rolled into the new house. They won't allow cash out when you buy a home.
0 votes Thank Flag Link Sun Mar 10, 2013
Selenay2k, what you're asking about is known as 'cross-collateralizing' which won't work for residential transactions.....the same loan can't finance more than 1 property at a time....

Can't hurt to ask though!

Good luck, and let me know if I can be a resource to you!

best, Jeff M
0 votes Thank Flag Link Sun Feb 10, 2013
I have a great loan officer from Chase that might be able to help you...Tyler Horton. He could most likely answer your questions on what options you might want to consider. He can be reached at 916-549-8434. he's here in California but can help you across the country, and besides, right now you're just educating yourself on your options.

He will be very informative.
0 votes Thank Flag Link Fri Jan 4, 2013
One other thing, if I just wanted to get rid of my house quickly, would you ever suggest selling to one of those companies that buy for cash? I'm thinking of that as a possibiliy as well, but don't want to get too short changed since I don't HAVE to sell.
0 votes Thank Flag Link Fri Jan 4, 2013
Thank you both for answering so quickly. I will have to see which way would be the best way to move forward with this. I should probably call Chase (my current mortgage holder), and ask one of their loan officers
0 votes Thank Flag Link Fri Jan 4, 2013
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