my home worth 250, 000 is paid for do i still need a bridge loan?????

Asked by Brenda Morris, Newburgh, IN Fri Jan 7, 2011

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Dan Tabit, Agent, Issaquah, WA
Fri Jan 7, 2011
Brenda,
If you are relying on the equity of your current home to purchase the new one, then you may. Funding on the new purchase has to be fully in place in order for it to close. The only other option I could imagine would be for the seller of your new home to agree to a second mortgage tied to the equity in both homes. They would only do this if they didn't need all their funds and were being compensated for their trouble.
If there is more to your question than I am understanding, please elaborate.
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Tim Moore, Agent, Kitty Hawk, NC
Fri Jan 7, 2011
No, you need a whole new mortgage on the new house you buy. Once you sell the old home you could pay off the new mortgage if you wanted to. Another option might be to get a home equity loan on the old house and use it to buy the new one and pay off the home equity when you sell the old home - it depends on the price of the new house and what home equity value you get on the old one.
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