Home Buying in 92104>Question Details

rssraj, Home Buyer in 11375

Want to buy but may need to move

Asked by rssraj, 11375 Wed Jun 27, 2012


I want to buy a home but may possibly need to move in 5 years or so. Say in 5 years the interest rates are at historically average levels of 6% or so, can I somehow do anything creative to keep my old mortgage or transfer it over to a new home purchase? Or is my only option to continue paying off my current home and pick up a 2nd mortgage if I can afford one?


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Option #1
You could purchase now, and stay within a price range that will ensure that you can capture the full PITI (principal, interest, taxes and insurance) after 5 years, by turning that home into an investment property & renting the home out. If you secure a renter with a lease, you can use that to help qualify for a new mortgage in your new city. Of course down pymt, fico score,debt to income ratio will all be analyzed again.

Option #2
You could sell your home before you move, hopefully with enough equity for a down payment on your next home. Very hard to say where rates will be in 5 years, but inflation is ahead, we keep hearing, that will drive rates up evntually.

As others have already stated correctly, the loan is attached to the property and will not transfer. If you find a super deal now, you may just be in a good position in 5 years. Good Luck, let me know if you want any help!

Chris Gorno
DRE# 01499885
Windermere Real Estate SoCAL
1 vote Thank Flag Link Wed Jun 27, 2012
Honestly??? I would not buy unless I was intending to stay put.

That said, if you ARE going to buy, I recommend buying in a neighborhood where it is easy to rent (North Park, Hillcrest, College Area, UTC, etc) so if you need to, you can rent the home out easily.

I would also make sure that you get a stable 30 year fixed mortgage.

These two things will give you options if you choose to move. Honestly, no one can answer your question legitimately because we simply don't know what the market and interest rates will be like at that time.
0 votes Thank Flag Link Wed Jun 27, 2012
As others have said the rate is tied to the loan on a specific property and cannot be transferred to another. If you are definitely going to move in 5 years yo may want to consider an adjustable rate, which would have a bit lower rate. I would only suggest this if you are sure that you will be moving in 5 years.
If you sell your home when you move, it is possible that you will have some equity that you can use for the down payment on the purchase of your new home. That could make qualifying for a new loan easier.
I work with several lender who can help you with the financing of your purchase and I would like to help you find a home that meets your current needs. Please contact me at your convenience and feel free to use the search feature on my website to look for homes.
Best wishes,
I am never too busy for your referrals

Jerry Heard
Your Broker
The San Diego Property Shop
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE # 00648687
0 votes Thank Flag Link Wed Jun 27, 2012
If only your creative idea was possible. But alas, mortgages are tied to properties, and are not transferrable. And the few that are assumable, allows the mortgage to stay with the home. It never transfers to another property with the borrower.

If you need to move in 5 years, sell your current home and buy a new one. The rate might be higher, but hopefully you will have made a bit of equity and can put a larger downpayment down.

Good luck!
0 votes Thank Flag Link Wed Jun 27, 2012
Currently I have clients who owe on a mortgage for a primary residence and are qualifying for another loan to purchase other real estate.... You should talk to your preferred lender, banker or mortgage broker to see what you qualify to purchase. They know all of the programs, rates, terms, etc.

No one has a 'crystal ball' as to where interest rates will be in 5-10 years. I am hearing that rates will remain relatively flat into 2014. The prices of real estate may very well be on an upward trend here as I am seeing multiple offers on listings which indicates a 'tipping point'. The buyer pool is growing so the demand is higher than the current supply. Watch the marketplace for new listings and see how long they last on the market and how much they eventually sell for...many of them are going for more than the listed price (because of multiple offers) and are going off the market in the first week.

I live/work in 92104 so if you need a Realtor once you have your loan pre-approved you are welcome to contact me. I can be reached at http://www.BiancaRomani.com. When you decide to interview agents please contact me.
0 votes Thank Flag Link Wed Jun 27, 2012
Great question but I hate to say interest rates do not transfer to new purchases. Its smart that you are keeping current on this historic interest rates which are making it a great opportunity to buy here in San Diego. Watch this short video that will describe how affordable buying now is compared to buying just 5 years ago... what an eye opener to those first time buyers or people on the fence about buying. http://www.youtube.com/watch?v=UWvRk4wjOws&feature=share I hope you found an answer to your question and found this video helpful.

Take care and good luck with your purchase,

Michael Nelson
Woods Real Estate Services
930 W. Washington St. #1
San Diego, CA 92103
0 votes Thank Flag Link Wed Jun 27, 2012
Hi There,

Unfortunately, your interest rate is tied to a particular loan, so you'd be buying a new home at the interest rates at that time. Hopefully, they'll still be low!

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
0 votes Thank Flag Link Wed Jun 27, 2012
You have 2 options - sell the home and buy another home with a new mortgage or keep the home and buy another with a new mortgage if you qualify to have 2 simultaneous mortgages.

The mortgage is a loan specific to a property and property value.
0 votes Thank Flag Link Wed Jun 27, 2012
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