Help Loan source - Bridge, Mortgage, Equity?
I am a 67 yr old widow wants to go my home & buy new condo. How do I go almost it the best way?
Scenario:
Sell Ranch Home - very desirable location one acre lot
Home have no mortgage
Market & selling price are down (that's ok, it is still do-able)
My disposable cash is about 1/2 of the condo cost
Condo is hot & builder will take contingency (is this a good opinion for me or does it increase the cost I might have gotten?)
I've never sold or bought a home (we built it) and I'm lost here with what direction is best for me. I want to travel ahead & market my home & buy the condo.
My goal is market the house - buy the condo and to have NO mortgage when the dust settles. Here are the options I see unstop to me to obtain less than partially the money needed to buy the condo.
1. Withdraw some 401k money (I have not tapped any yet)
2. Get a Home Equity loan & wages it up when I sell my house
3. Take a mortgage (is there a tax to pay it back right away?)
4. Check into a bridge loan? (can I money it right back?)
5. Forget the condo and just move to an apartment.
If it matter, I live in Wisconsin
I sure wish nearby was a class to take for seniors downsizing. The biggest problem for me surrounded by todays market is simply the fear of doing this alone and wrong. Yes, I will carry a lawyer and yes I will hire a RE broker but I have done neither one all the same.
Thank you in advance for any give support to.
Answers:
Priority is sell your house before anything else. Sales collection from 3 months to 18 months. When you receive a deposit and signed contract then and only afterwards start looking for a place to live.
To relieve you of stress take an apartment. Once the dust settles Now look for your condo, use the cash from the house Dutch auction as your down payment. Take a mortgage for the remainder, 15 years.
Draw from your 401k monthly to meet the mortgage sum. That way you do not get hit beside a heavy tax burden by withdrawing a lump sum from the 401k. Bridge loans and Equity loans are to expensive and will hurt financially if you do not find a buyer for your house.
Most community colleges propose evening classes in this subject.
Be careful here...the knob here is to sell your home first before you commit to the condo. Bridge loans and HELOC's are not an selection, banks will not give them to you if they know you're looking to market your home. You can withdraw from your 401k but you will be paying income taxes on the withdrawals, so it's costing 20%-30% more than the condo expenditure for that luxury. If you do mortgage the condo, there should be no prepayment fees on the mortgage(most lenders did away with that a while ago). Buy the condo but get rid of the house first...Trust me in this market that condo will still be in that....Good Luck
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Scenario:
Sell Ranch Home - very desirable location one acre lot
Home have no mortgage
Market & selling price are down (that's ok, it is still do-able)
My disposable cash is about 1/2 of the condo cost
Condo is hot & builder will take contingency (is this a good opinion for me or does it increase the cost I might have gotten?)
I've never sold or bought a home (we built it) and I'm lost here with what direction is best for me. I want to travel ahead & market my home & buy the condo.
My goal is market the house - buy the condo and to have NO mortgage when the dust settles. Here are the options I see unstop to me to obtain less than partially the money needed to buy the condo.
1. Withdraw some 401k money (I have not tapped any yet)
2. Get a Home Equity loan & wages it up when I sell my house
3. Take a mortgage (is there a tax to pay it back right away?)
4. Check into a bridge loan? (can I money it right back?)
5. Forget the condo and just move to an apartment.
If it matter, I live in Wisconsin
I sure wish nearby was a class to take for seniors downsizing. The biggest problem for me surrounded by todays market is simply the fear of doing this alone and wrong. Yes, I will carry a lawyer and yes I will hire a RE broker but I have done neither one all the same.
Thank you in advance for any give support to.
Answers:
Priority is sell your house before anything else. Sales collection from 3 months to 18 months. When you receive a deposit and signed contract then and only afterwards start looking for a place to live.
To relieve you of stress take an apartment. Once the dust settles Now look for your condo, use the cash from the house Dutch auction as your down payment. Take a mortgage for the remainder, 15 years.
Draw from your 401k monthly to meet the mortgage sum. That way you do not get hit beside a heavy tax burden by withdrawing a lump sum from the 401k. Bridge loans and Equity loans are to expensive and will hurt financially if you do not find a buyer for your house.
Most community colleges propose evening classes in this subject.
Be careful here...the knob here is to sell your home first before you commit to the condo. Bridge loans and HELOC's are not an selection, banks will not give them to you if they know you're looking to market your home. You can withdraw from your 401k but you will be paying income taxes on the withdrawals, so it's costing 20%-30% more than the condo expenditure for that luxury. If you do mortgage the condo, there should be no prepayment fees on the mortgage(most lenders did away with that a while ago). Buy the condo but get rid of the house first...Trust me in this market that condo will still be in that....Good Luck
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