No. of Recommendations: 1
Husband and I have found a house that we really, really want to buy. Let's call it the "new house." Here's our situation:
We purchased our existing house (the "old house") in 2009 with cash, and we carry no mortgage on the property. We have no long-term debt, pay credit cards in full monthly, have a tidy emergency fund, and two partially-funded 529 plans for the kids' college expenses. We recently received a nice inheritance, so we also have a large sum in savings (outside of the e-fund) while we decide where to invest.
Thanks to that inheritance, we can afford to put down 40% of the asking price for the new house in cash. Since the old house is not currently on the market, and we really don't want to lose out on the new house, what are our options for financing the balance of the asking price? HELOC, bridge loan, mortgage?
Once we buy the new house, we'll be putting the old house on the market, and once it sells, we'll use the proceeds to pay off whatever financing we took on. In that way, we'll own the new house, mortgage free as well. Probably should explain that the new house will cost about the same as the sale price of the old house.
Thanks for your advice!
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