Posted by Irwin on May 20, 1999 at 18:57:55:
Larry: If I had known you needed help this fast I’d have taken off work earlier in the day :-).
I think you have a substantial math problem to solve here, and I’m not quite sure how to do it. I know that you should always keep the principal balance of your mortgage lower than the payoff on their contract. Otherwise you might get caught having to come up with a lump sum in cash to pay it off. Also, with the large down payment, their monthly payment to you could be lower than your mortgage payment, which would require you to come up with cash each month. You’re going to have to work with amortization schedules for both loans, and perhaps an HP calculator (plus someone smarter than I). Maybe you should take their d/p, apply all of it to your mortgage and then refi the balance. The current mortgage holder might be willing to do it. That way, you can get your mortgage more in synch with their contract. Hope I haven’t cornfused you too much.