Posted by James (FL) on July 02, 2003 at 20:50:11:
SPD,
If it will actually be a second home, and you can qualify, you should get your own mortgage. Many times, with blood relatives, you can get a gift of equity, and actually only financing 80% or less of the appraised value instead of financing 95 or 100% of the purchase price. The rates should be pretty good even on a second home at 80%. If he’s been there 10 years, ,I’m assuming he has at least 20% equity in the home. You should be able to get somehitng in the 6% range at worst. Email me directly if you need any help and I will give you my officee number.
My father has a 3BR rental house he would like to sell me which he has owned for the last 10 years. He owes about 64K on it. It has an assumable mortgage(30 year) to a blood relative. However, it has an 8.75% rate and a 1000.00 charge for adding me to the mortgage. My question is should I assume the mortgage and refinance, or should I get my own loan at a lower rate? What are the pros/cons to these choices. Right now I am applying to purchase this-I dont know if I could qualify or not for buying a second home(I am a homeowner now)…but I am assuming that I will.