Home Buying in Alameda>Question Details

vanvliet_ste…, Home Buyer in Antioch, CA

Purchasing a home using equity in first home.

Asked by vanvliet_stephen, Antioch, CA Tue Jun 17, 2014

Hello,
I currently have a rental home with a mortgage of about 66K with about 25 yrs left at 5.125%. The rent is $1100 with mortgage of $600.00. I believe this home is worth about 140K minimum. With this being the case, am I able to take money out to use towards a new home? I dont really have much saved except an emergency fund of about 5K.

In investing for future terms, I am 27, plan to hold on to this first home for the long run. Would this be a smart idea?

Thanks for your time,

Stephen

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2
Fantastic Question!!! Great Purchase. Took advantage of the downturn. Yep! My Advice do not sell. Keep the investment! Just take enough out to keep your self in the Black! Gotta love the feeling telling family and friends your ROI monthly! Take enough out to just purchase the house you want to live in for the next 7 years. Remember markets always turn maybe not as drastic as this one we had in California but they do turn. So you will want to be ready for the next house run. Maybe purchase a nice 3 or 4 bed 2 bath in good school district. If your married get some friends to help pay the mortgage. When your ready for a family than kick them out and get started. The interest rates are low so take advantage. If you ever run out to the Sacramento area and need some investments look me up always willing keep my investor's on MLS listings and pocket listings.

Best of luck!
0 votes Thank Flag Link Tue Jun 17, 2014
Hi Vanvliet,

Some of the published interest rates today, on a cash out investment property loan appear to be lower than your current rate so it might make sense. You just have to crunch all the numbers.

Best regards,

Elva A. Wormley
Mortgage Consultant
Office (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / BRE #01274093
0 votes Thank Flag Link Tue Jun 17, 2014
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