Best Financing method - Posted by Maria

Posted by qstaff on August 11, 2003 at 19:26:08:

You could be really conventional and just go to the bank and get a home equity loan on the house you have now and put more downpayment on the house you’re buying. You wouldn’t have to use any cash outlay at all.

Best Financing method - Posted by Maria

Posted by Maria on August 11, 2003 at 15:31:00:

Hello,

We currently have $450K in equity in our home. We would like to purchase a second home for $315K. We have a little over 10% of the downpayment. How can we leverage our current equity and avoid paying PMI on the new home.

thanks for the help

Re: Best Financing method - Posted by Joe

Posted by Joe on August 11, 2003 at 16:11:05:

As long as your credit & income support this program, I would do an 80/10/10. This means that you would put your 10% down payment, then the first mortgage would be 80% and the second mortgage 10% of the purchase price. This would allow you to preserve the equity position on your current residence, and still avoid PMI on your second home. Feel free to shoot me an e-mail if you have any questions.