Posted by JohnBoy on February 20, 2002 at 12:14:40:
Good point. BUT! I would still take it over suject to first THEN go back and refi to avoid going through the process as a new purchase, thus avoiding having to put up a down payment by just refinancing as a rate & term refi. Closing costs should be a lot less also.
Would you Sub-to? - Posted by ETalbert
Posted by ETalbert on February 20, 2002 at 10:43:41:
Would it be wise to do a subject to on your own residence. In other words, I found a house I would like to make my own, would it be feasible and safe to do a Subject to deal? Maybe Refi 2 years after and cash out, and pay the original seller’s note? Please advise,
ETalbert
A contrary opinion to JohnBoy’s - Posted by ken in sc
Posted by ken in sc on February 20, 2002 at 12:07:01:
With respect to JohnBoy, the only reaso I would NOT go ahead and get a bank loan now is if you do qualify for a good rate. Because if you do qualify, I would go lock-in that rate. Who knows what rates are going to be in 2 yrs? If that is your plan, to refi in 2 yrs, why wait? If you have the closing costs and downpayment now, then go for it. Especially if you are going to live there for awhile.
Now, if you may only live there 2 or 3 yrs, then I might very well subject-2 the house and hope to never have to refi, thus savings the closing costs. But if this would be your residence long-term, then I would want to make sure I keep these great rates we have now.
Just my thoughts…
Ken
Re: Would you Sub-to? - Posted by JohnBoy
Posted by JohnBoy on February 20, 2002 at 11:06:02:
Why not? As long as you can deal with it should a problem come up like the lender finding out and calling the loan due, then go for it!
Why ad debt to your own credit file by getting loans in your name when you don’t have to???
That just leaves more financing power for yourself to get funding on the really good deals that come along where you would need cash to get the deal!
The less debt you accumulate in your name, the better!
The less personal liability you take on, the better!
Re: A contrary opinion to JohnBoy’s - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on February 20, 2002 at 15:53:35:
I would also add that you can assume appreciation in the value of the property over 3 years. You can then re-fi based on the appreciated value and pull cash out of the deal for other investments, child’s tuition, etc.
BMP