Trulia Community - Advice from neighbors and local experts

Find Your Community
We couldn't find that location. Please try again.
Get Expert Advice

Financing in Ocean Pines : Real Estate Advice

  • All32
  • Local Info3
  • Home Buying11
  • Home Selling0
  • Market Conditions0

Activity 1
Tue Feb 7, 2012
Don Tepper answered:
No.

It doesn't work that way.

The new mortgage would only cover a percentage of the appraised value of the new property.

What you're talking about, perhaps, is called a blanket mortgage--a mortgage that covers two or more properties.

However, I'm not sure you'd see any savings from your plan. Your way, you'd have one huge mortgage on the new property and a paid-off second property. In the conventional way, you'd have two mortgages adding up to the same amount.

Recognize that you may not have to put 20% down on the new home. With FHA, for instance, you'd only have to put 3.5% down. And there probably are programs that would allow you to put, say, 10% or 15% down. That, in turn would reduce your required downpayment, while giving you more money to pay off the mortgage on your current home.

Check with a Realtor or lender for more information (and possibly other strategies to help you accomplish your goal).

Hope that helps.
... more
0 votes 2 answers Share Flag
Search Advice
Search

Followers

161