ERBtheGREAT Posted November 20, 2022 Report Share Posted November 20, 2022 My parents are going to buy a house for 125k. They want to put 20% down and take out a loan for 100k. After fixing up the new house they want to move in and sell their house and pay off the mortgage in like 6-8 months after getting it. Any advice on the cheapest way to do this? Thanks for any input, just want them to make the best choice. Quote Link to comment Share on other sites More sharing options...
ERBtheGREAT Posted November 20, 2022 Author Report Share Posted November 20, 2022 Their old house is paid off and worth around 150-160k. Quote Link to comment Share on other sites More sharing options...
mikeman Posted November 20, 2022 Report Share Posted November 20, 2022 You can loan them the $100K and they can pay you back when they sell the old one - almost no costs involved. Quote Link to comment Share on other sites More sharing options...
D-Hustle Posted November 20, 2022 Report Share Posted November 20, 2022 what state is that? houses in MA are around half a mill. I gotta get out of here, impossible to survive. https://homesforsale.century21.com/property/104-Common-St-Quincy-MA-02169/35961466/detail?src=list Quote Link to comment Share on other sites More sharing options...
Downsouth Posted November 20, 2022 Report Share Posted November 20, 2022 Do they own current house outright or have enough equity to purchase new house)? If so take a home equity loan out(shop around to find lowest initial fees). Buy new house with funds from HELOC and use for repairs of new place as well. Sell current house (Paying off HELOC) and move into new house. Quote Link to comment Share on other sites More sharing options...
Jimmy Hoffa Posted November 20, 2022 Report Share Posted November 20, 2022 8 minutes ago, Downsouth said: Do they own current house outright or have enough equity to purchase new house)? If so take a home equity loan out(shop around to find lowest initial fees). Buy new house with funds from HELOC and use for repairs of new place as well. Sell current house (Paying off HELOC) and move into new house. BINGO! Quote Link to comment Share on other sites More sharing options...
PatrickBateman Posted November 20, 2022 Report Share Posted November 20, 2022 54 minutes ago, mikeman said: You can loan them the $100K and they can pay you back when they sell the old one - almost no costs involved. Interest on ERB's part unless he charges them. Quote Link to comment Share on other sites More sharing options...
ERBtheGREAT Posted November 21, 2022 Author Report Share Posted November 21, 2022 2 hours ago, PLB said: Interest on ERB's part unless he charges them. Don’t have that much liquid right now, if I did I would loan to them 0 interest. Quote Link to comment Share on other sites More sharing options...
D-Hustle Posted November 21, 2022 Report Share Posted November 21, 2022 I need a fukkin loan Quote Link to comment Share on other sites More sharing options...
ERBtheGREAT Posted November 27, 2022 Author Report Share Posted November 27, 2022 On 11/20/2022 at 4:54 PM, Downsouth said: Do they own current house outright or have enough equity to purchase new house)? If so take a home equity loan out(shop around to find lowest initial fees). Buy new house with funds from HELOC and use for repairs of new place as well. Sell current house (Paying off HELOC) and move into new house. That’s what they opted to do, thanks Houser! I believe they got 4% from their credit union, only fee for the whole loan is 700 dollars when paid off, 500 of it is for appraisal. Thanks pal! Quote Link to comment Share on other sites More sharing options...
D-Hustle Posted November 27, 2022 Report Share Posted November 27, 2022 Where can I get a loan? Quote Link to comment Share on other sites More sharing options...
ERBtheGREAT Posted November 27, 2022 Author Report Share Posted November 27, 2022 1 hour ago, ERBtheGREAT said: That’s what they opted to do, thanks Houser! I believe they got 4% from their credit union, only fee for the whole loan is 700 dollars when paid off, 500 of it is for appraisal. Thanks pal! I meant souther! Haha Quote Link to comment Share on other sites More sharing options...
FISHHEAD Posted November 27, 2022 Report Share Posted November 27, 2022 125k here would get you a 450 sq ft studio condo.......in a bad area. Quote Link to comment Share on other sites More sharing options...
FISHHEAD Posted November 2, 2023 Report Share Posted November 2, 2023 1 minute ago, ElliotRandall said: I know my response is delayed, but someone may still need this information. To minimize costs, they can explore different mortgage options with competitive interest rates and low closing costs. It's also important to consider the loan term; a shorter term usually means lower interest overall. Since they plan to pay off the mortgage in 6-8 months, they should check if there are any prepayment penalties. It's smart to ensure they have the flexibility to make extra payments without any fees. For financial matters, I typically consult with a Mortgage Broker in Colchester. THX BRIAN Quote Link to comment Share on other sites More sharing options...
Jimmy Hoffa Posted November 2, 2023 Report Share Posted November 2, 2023 Solid poster, top 10. Quote Link to comment Share on other sites More sharing options...
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