Buying a home during the pandemic Real Estate |
- Buying a home during the pandemic
- Is this the worst time to buy a house?
- Beware of TD Bank and Service Link
- Selling a house that has been smoked in for a decade?
- Best approach for shopping around for best mortgage rates?
- My realtor will not share my home inspection with the selling agent because “then they’d have to disclose everything”. Is this normal practice?
- What type of professional am I looking for to inspect potential wood rot on exterior?
- being a real estate agent with opendoor? any reviews?
- Why do I care if my house “sells fast?”
- So I'm pissed!
- Should I let my rate lock expire to get better rates?
- Should I complain to supervisor?
- Looking to buyout a sibling on inherited house in CA. Please help me understand my options and advice would be appreciated.
- Will offering more of a down payment "sweeten the deal"
- Interest rates
- I went to see a house this evening, was going to put an offer tomorrow or early Sunday. Saw on MLS that owners accepted another offer .
- Owning a vacation rental in Southeast Florida
- Everyone here has recently been discussing whether it’s the right time to buy and buyers remorse. Has anyone had a case of sellers remorse?
- Why can’t I get rid of my PMI if I’m under 80% of the updated appraisal value? We have over $100k in equity but the bank is saying it’s not 80% of the purchase price. Does that sound reasonable?
- Developer looking for a marketing guy/team for partnership.
- Do buyer’s agents talk price with the listing agent generally?
- Owning to cost more then renting
- Tax returns during closing time.. Dumb question
- Agent contract questions
- Short term 401k loan to pay off first mortgage between buying second home and selling first?
| Buying a home during the pandemic Posted: 07 Aug 2020 09:25 PM PDT It's been a nerve-wracking 3+ weeks, but my husband & I just received the all-clear to close from our loan officer, and we're going to be signing off on our loan & escrow documents next Tuesday! 🎉🎉🎉 I wanted to make a post because I've seen so many "Is this a bad time to buy?" posts on /r/realestate and I wanted to share our perspective. Hope this helps other first-time homebuyers :) 1. Deciding to buy My husband and I decided to buy a house in October 2019 shortly after we got married, and spent a good part of the year looking on and off in various different neighborhoods around Los Angeles, CA. It took us 6 months, 100+ listings and probably a dozen open houses to figure out what we wanted. I recommend all first-time homebuyers to take your time and figure out your must-haves. For us, that ended up looking like this:
2. Figuring out how much to spend We got pre-qualified with 2 banks (Chase and Wells Fargo) to figure out how much house we can qualify for, and then we used this calculator to figure out how much house we can comfortably afford based on how much we were willing to pay monthly. We live in a HCOL area, so we opted to keep our mortgage under 40% of our take-home income. Based on our criteria and affordability, we narrowed the areas we were looking to just 2 zip codes. We spent May through July going to open houses, made 2 offers and got 1 accepted on July 15. Our offer price was 8% higher than asking. Under normal circumstances, we definitely would've gotten away with asking price or maybe 1-2% higher, but everyone's trying to buy a house during the pandemic, so we went above and beyond to make sure we could secure the house. (We did ask for appraisal, inspection and loan contingencies though.) P.S. Our real estate agent ended up referring a loan officer to us who got us a 2.875% rate. 3. Why we "overpaid" I was on /r/realestate and /r/homeowners a lot during this time, and read all the differing opinions on why we should or should not "overpay" for a house during the pandemic. My husband and I really struggled over this, so I wanted to offer some visibility into our decision-making process to help others in our position. First, we evaluated why we wanted to buy a house:
Then, we looked at our finances:
4. We bought a house during the pandemic In the end, market value wasn't a determining factor for us because we're planning on living in this house for the next 10-20 years (at least), and even if our house value dropped 20%, we'd still have paid less than if we were renting (even taking into consideration house upgrades and upkeep). Our reasons for buying a house would've been the same regardless of the pandemic, and we would be okay financially even if we both lost our jobs. So we made peace with paying 8% over asking, and we're getting ready to close next week :) Hope our perspective during this wild, wild time helps someone out there struggling on whether they should go ahead with their home purchase! [link] [comments]  |
| Is this the worst time to buy a house? Posted: 07 Aug 2020 10:40 AM PDT People (my agent, some family members, media, etc) keep saying that now is a great time to buy a house because rates are low. But I feel like now is the worst time to buy a house because there isn't much to choose from and prices have remained at all-time highs or have even increased. I feel like this can't last forever...like the market is basically being artificially held up by programs like the mortgage forbearance which I've read will likely be extended again. We have record unemployment coupled with record numbers of people simply not making their payments...how is the real estate market sustainable at its current level? I don't wish ill on anyone else but these are just the economic realities right now. I feel like if I buy a house today, I'm going to lose my shirt on it in 2021. "But you'll make that equity up if you live in the house for a long time, you can ride it out." I hear that a lot. That's not a strong argument IMO because if I buy that same house next year at 30% off, I can live in it for nearly the same amount of time and be hundreds of thousands of dollars ahead over the life of the loan. If you're currently in a rental, I see no good reason to buy into the housing bubble right now. But then the question is...when does it pop? Curious what other think about this. Thanks! [link] [comments]  |
| Beware of TD Bank and Service Link Posted: 07 Aug 2020 03:21 PM PDT For the love of god never use TD Bank! Despite requesting a title agent of my own choice they assigned me Servicelink and I have now missed the closing date a second time. TD bank waited until a week and a half before closing to tell me this, as the loan processor seems to have completely forgotten to order a title search. Servicelink tells me that it will take 7-10 business days to complete, so right off the bat I miss the 30 day closing. We extend the closing date a week to today (8-7-2020) thinking it will be plenty of time, but we were dead wrong. Myself, the seller and my buyers agent constantly tried to make contact with my closing agent at servicelink via email and call and got zero responses. Wednesday evening of this week I call my loan processor (LP) at TD, who is damn near impossible to get ahold of, and ask if she has the title search yet. The LP tells me no, the closing agent has yet to provide the tax information. So Thursday after repeated calls the closing agent picks up and says she is still waiting on the tax information, but she thinks she'll get it today. At this point its understood closing date two is missed, but hey, at least we'll be set for next Friday. So this morning I get ahold of servicelink to get an update on the tax information. The closing agent then fucking informs me that for 2 goddamn weeks they have been calling city hall but have gotten no response and at no time could they bother to have told us any of this. Immediately I call the treasury office and get a voicemail that says all mortgage, title and closing companies need to email them at this address for tax info. So for two fucking weeks those idiots sat there and most likely called the wrong number or clearly ignored the cities instructions. I get the email address and send it to the closing agent. She responds for once saying that she has now sent the form and that she'll keep me posted. No update this afternoon, so I get ahold of her supervisor and ask for an update as this is the only item holding up the clear to close. I tell him that for two weeks she sat there calling the wrong number and never bothered to update any of us. He then tells me that she had put in her two weeks last week, so pretty much she has said fuck it, I'm done doing my job. So now here I am at day 40, a second closing date missed and god only knows how long till I can actually close. Fuck TD Bank and especially Fuck servicelink. They have insured that buying a home has become a goddamn nightmare. TLDR: Never fucking use TD bank for your home loan, and sure as shit stay the hell away from servicelink. You'll find nothing but pain, frustration and numerous missed closing dates if you work with them. [link] [comments]  |
| Selling a house that has been smoked in for a decade? Posted: 07 Aug 2020 07:57 PM PDT Backstory: I'm a 23(M) who doesn't live at home anymore and just started my career after grad school. My twin brother is in another state and my mom wants to sell our 5 bedroom home. From the outside it looks like an amazing home but it's smells absolutely horrible. I was a kid who smelled like smoke every day in middle school and high school. My grandma (now deceased) and my mom would chain smoke downstairs and this still hasn't stopped over a decade later now that my mom just lives there. This is a smell that hits you walking up the door to give y'all some clarification. This would be the first thing a future home buyer would notice. She wants to sell it but I know she's going to have to sell SOOO much lower then what she wants because of the smell. Are there any tips or tricks of de smoking a house that anyone on this thread has seen? It's obviously all her fault, but I want to try and provide her some input on fixing the situation so please don't degrade her or try to give me advice on helping her quit or smoking outside. I've been trying my entire life. [link] [comments]  |
| Best approach for shopping around for best mortgage rates? Posted: 07 Aug 2020 07:38 AM PDT My fiancé and I are looking to get pre-approved next month and wanted get advice for how we should shop around for the best mortgage lender and low interest rate. Right now we have my bank as an option since I am part of a credit union (which have been known to have the best rates) but I wanted to explore other opportunities to make sure we get the best rate possible with how things are now. Is the process as easy as calling and asking what their current mortgage rate is at that time? Or do we have to get pre-approved first for an official rate? We both live in Maryland looking to live in Harford county. Any resources or links will be helpful as well! [link] [comments]  |
| Posted: 07 Aug 2020 05:18 PM PDT In my personal case - the property disclosure was extremely limited, but some of the information that WAS provided was misrepresented. Examples:
Turns out they were INSTALLED 7 years ago, but all parts were bought used and installed by current owner. Selling agent claims the discrepancy was just a "misunderstanding" but not to worry about it, because it's a Lennox and they last forever! I understand it's a sellers market and they're going to want to push deals through, but this seems like sales people (both my realtor and the selling agent) engaging in illegal/unethical activity. Am I wrong? [link] [comments]  |
| What type of professional am I looking for to inspect potential wood rot on exterior? Posted: 07 Aug 2020 08:53 PM PDT My inspection report says " Wood deterioration noted in several areas around the home, recommend a licensed professional evaluate and repair the home's exterior. " Question is: who am I looking for? What search term do I type into yelp? thx! [link] [comments]  |
| being a real estate agent with opendoor? any reviews? Posted: 07 Aug 2020 10:56 PM PDT a lot of people struggle as new agents, so I figure id share my experience joining opendoor, instead of waiting for a commission I get paid hourly, its a good way to learn about investing to. Is anyone from here with opendoor? [link] [comments]  |
| Why do I care if my house “sells fast?” Posted: 07 Aug 2020 07:25 PM PDT My wife and I are in the process of "getting our house ready to sell" over the course of the next 6 to 9 months. Just a little background here first: We're planning on buying some land with some other friends and we need to sell our house in order to have the equity to purchase it and then build. We're not really in a hurry from this perspective because they kind of need to get their ducks in a row as well. In the last year, we just replaced all the hardie plank on the outside, put in a new driveway, and put on a new $35k porch. Since we moved in, we have been updating a lot but some of it has just been cosmetic upgrades. It looks very nice though. It's not ridiculous but it's done nicely and my wife has a good decorating style. Here are a few pictures of the master (which in did a wood ceiling on) the porch and the kitchen eating area (which I also did a wood ceiling on): https://imgur.com/gallery/Re20E9y It was built in 1988 and still has the original kitchen cabinets, the gold shower, jacuzzi tub etc. All have been "redone" with new paint, hardware, hinges etc but it's still original. I'm extremely handy and I am a woodworker and can do most of the upgrades myself. Ultimately the four projects it really "need" to get done are the kitchen needs to be updated, the master bath needs to be updated, the second bath needs to be updated, and the laundry room needs to be tiled. I can do tile work, electrical work, pretty much everything. If we ended up putting in new kitchen cabinets and basically giving the kitchen a facelift, I can do all that as well. Being that I can do it all myself, it's not very expensive work. I live in the safest city in Georgia and the schools are all 9 or 10/10. It's a great little suburb of Atlanta and it's a nice neighborhood. The houses in our neighborhood go for somewhere between $400k and $470k. Houses that have nothing done might go for $390k but overall those are the ranges. As I said, the upgrades would be somewhat cheap. I can probably give the kitchen a really nice facelift with new cabinets, quartz countertops, new range/oven etc. for about $15,000. The master bath I would retile the whole floor, new tub, tile the shower and put in a new vanity. I figure around $10-$12k for that. $6k for the kids bath and $500 for the laundry room. But won't my house still sell without all this? My wife is an amazing decorator and the house looks great. Why bother putting $40k into these projects just for it to sell for $40k more? The answer I see online is that it will "sell faster" but if we don't care about that, is there a downside to just listing and waiting? TLDR: if my house will sell for $410k without updating the kitchen, master bath, etc, why should I put $40k into it and do all the work just to have it sell for $450k? Why not list now? What am I missing? Side note, we bought in 2012 at the absolute bottom and got a steal of a deal at $212k. We've dumped a lot of money into it but we've paid off a bunch since then so we have a lot of equity to put it mildly. [link] [comments]  |
| Posted: 08 Aug 2020 01:28 AM PDT Sorry for the super long post but this happened about 10 hours and many bourbon drinks ago and I've finally calmed down to actually post it. We decided to put our house on the market at probably the worst time possible and listed it early April. Our home is less than desirable but it is in fairly good shape in not a bad neighborhood. Other homes in close, list in a similar time and go quick and more for asking. they may have an extra bathroom or a garage, which i understand make them better choices. We are on the market for 6 weeks when we get a buyer, who is pre-approved for an FHA offering us asking, which is all we wanted, with a bit of closing assistance, and we're completely fine with that. Side note, up to this point we've put several...lets be honest 10 offers on homes and have been beaten out. About a week and a half after finally getting a buyer for our home, we find one that hits every thing that we want, minus having a ton of carpet, within 20 seconds of it going live. We're the first ones in, love it, but feel the asking is the exact price it's worth so we offer that with limited inspections and no closing assistance, and is accepeted within the hour. Side note the house appraised exactly for what was asked. We go through inspections on both homes, ours needed a foundation crack reparied, which we paid out of pocket to have done, which we had no problem doing as it absolutely needed to be taken care of. The new home only needed minor things that we were completely cool with accepting just a closing credit to balance it out. We fix our crack out of pocket, we didn't know about it before inspections, and everything else is good to go. Then we are told on our home closing day buyer needed a couple days due to the lenders needing something from his child support to finish everything up. Mind you we had already moved everything from our home to a storage unit cause our new home didn't close for 10 days. We agreed because we had friends and family homes to host us. Fast forward to the day before our closing on the new home, and the lender refuses to finalize the loan for some unknown reason. Apparently the buyer didn't qualify for one of the stipulations. From this because we were also getting an FHA for the new home just to help with down payment we cannot own two properties, we lose the new home, and rightfully so the sellers take our earnest money, and move on. So the last day or so I've been moving the livable stuff back to my home from the storage unit with nothing to show from it at a loss of about 30% because of earnest money offered between the buyer of my home and the new home we wanted to move in to. I just have to think the Lenders should have know almost two weeks ago that our buyer wouldn't have met the qualifications for the loan and could have let us know before we moved everything out, spent time as a separated family, and also spent on the inspections and everything else for the new home. I don't blame the buyers of our home or the sellers of the new home at all for any of this. We were totally fucked by the bank/lenders and I just have no idea where to go with this. We've put our house back on the market and are looking for new options, but just wondering if there could be any legal action we could take because of this towards the lenders or banks or who ever for costing us quite a bit in the long haul of it? [link] [comments]  |
| Should I let my rate lock expire to get better rates? Posted: 07 Aug 2020 06:21 PM PDT We locked in our rate approx 50 days ago, with the anticipation of closing today. Well we didn't close today and it's 90% the lender's fault (I'll take 10% on our side for not pushing them hard enough). 50 days ago, we were able to get 3.00%, with the plan of buying some points to bring us down to 2.875. Now everyone knows that's pretty much the new average. Our rate lock expires in 10 days. Should I just let it expire and refresh the rates? Or is the consequence of that a significantly longer waiting period to close? We don't technically need to be in the house by any date. [link] [comments]  |
| Should I complain to supervisor? Posted: 07 Aug 2020 06:12 PM PDT I am relocating to a new city for school. I'll be a full time student and will not be able to work but I have a loan from school with enough to cover cost of living and savings. I also have a co-signer. I'm moving with my boyfriend who also has a co-signer. We both have excellent credit and great references and rental histories. We viewed a place and explained our situation to the property manager. She told us how to apply and said she does not accept loans or unemployment but she would accept co-signers. We filled out four applications at $30 each. ( one for each of us and our co-signers. A few days later we received a rejection letter saying they cannot accept co-signers when they cannot verify employment for the primary tenants. I'm a bit upset that she had us apply knowing they would reject us because we do not have employment even if our co-signers make more than enough to pay 6 x the rent. I'm not usually one to complain to managers but this is pretty upsetting considering we drove all the way over there to view the units and she had all four of us apply. Do I have enough reason to complain? Should I get my money back for those applications? [link] [comments]  |
| Posted: 07 Aug 2020 04:19 PM PDT So we have a 50/50 inheritance on a 6 Bedroom house that my mom was renting the rooms for $500 each. House was appraised at 550k because it's pretty old (1984ish) and not well maintained. There is still $335,000 left on the mortgage. My brother and I thought it would be worth more so he asked his Real Estate Agent to look at it. He didn't visit the house but said compared to other houses nearby, it's between $600-650k. The property tax is about $1,800 a year. A coworker of mine that owns several houses said the house needs A LOT of repair. He estimated $100,000k in repair. He said a house like this is sold wholesale, "as is" because the amount of repairs is too much to fix up for a sale. Plus my mom is leasing solar panels that were $40k to buy out of the contract. My brother thinks that the house can still be rented like my mom was doing and be a good supply of income. He has a lawyer and real estate agent that have laid out options but I'm worried they haven't even looked at it and seem to be treating it like a normal sale. This is my first house if I buy his part of it. I read that I may have to get an estate loan instead of a mortgage loan. And it may trigger a reassessment of the valuation for property tax. Can I buy my brother out with a mortgage loan and if I do, does that cause the house to be reassessed for a much higher property tax? Is it better to just sell it and buy a newer house instead? [link] [comments]  |
| Will offering more of a down payment "sweeten the deal" Posted: 07 Aug 2020 08:37 PM PDT Here's the situation : there's this house we're seeing Sunday. It's beautiful and way under our budget. The house is across the street from my boyfriend's mothers who we need to take care of currently with her health issues/cancer/lupus. Let's say we offer asking price (we are pre approved and verified with cash assets) and offer more than 20% down (let's say 30-40%) and also give the reasoning about my boyfriends mothers declining health? Any advice? I know well there is going to be a bidding war but just wondering if offering such a large chunk down will help the seller choose us? Or any other advice would be nice. If we don't get this one oh well onto the next. Just would be nice because of his mother and the care she will need. [link] [comments]  |
| Posted: 07 Aug 2020 08:35 PM PDT My wife and i are nearing closing on a house (brand new construction). Their preferred lender just quoted us an interest rate of 2.375%. I'm very tempted to grab this (especially since as the preferred lender, their "bonus" is paying all closing costs) but should i shop around more? I've never heard of rates being this low, and I'm not sure if, say, my credit union will actually be a better choice. [link] [comments]  |
| Posted: 07 Aug 2020 09:51 PM PDT Is this common? My agent did great work in setting up the appointment to see the house today. I was going to proceed with the offer either today or tomorrow. According to my agent's information, the owners were supposed to make a decision on offers on Sunday (which was also the cut-off for any offers). I got home and noticed the owners accepted another offer. I am kind of disappointed I didn't even get a chance to put an offer. How common is this? [link] [comments]  |
| Owning a vacation rental in Southeast Florida Posted: 08 Aug 2020 03:25 AM PDT Hi all- I live in the Northeast and we are considering buying a home in Florida as we visit several times a year. I was looking originally in the Surfside area with the hoping of renting it out when we aren't there. I then learned there are restrictions on short term rentals and our agent says pretty much anywhere in Miami/Ft Lauderdale frowns upon vacation rentals. Is this true? We aren't trying to rent it out nightly and have a revolving door, but maybe monthly/weekly, through a property management company. Are we being unrealistic? Or are there areas nearby that would be more suitable to what we want (quick drive to beach,shopping,restaurants,etc)? Hoping to hear from people who have experience! [link] [comments]  |
| Posted: 08 Aug 2020 02:26 AM PDT I just went under contract in 3 days full ask all cash for a 3 unit I owned. I'm happy it went quick and I received full ask, but part of me wonders if I'll kick myself later if the growth continues. Part of the sale is due to first child (1 month), another investment property we purchased in April (SFH), and the hot market. Ideally I'd like to use this cash for other sources of passive income outside of Real Estate for the time being. So — have any of you had sellers remorse? [link] [comments]  |
| Posted: 07 Aug 2020 10:15 PM PDT |
| Developer looking for a marketing guy/team for partnership. Posted: 08 Aug 2020 01:58 AM PDT Hi guys! I'm a developer with more than 10+ years of experience - highly skilled in all modern technologies like: AI/ML, real-time data processing, big data etc.. I'm looking for a partner: an experienced real-estate marketing team or a solo-person, who already managed PPC campaigns for real-estate market and looking for custom technical solution to increase conversion. I'm working on lead management solution for real-estate market - and looking for a partner who has marketing experience or operate his own marketing agency for real-estate market. I'm ready to customize the solution for your needs on my own, and lead the development role. I'm not looking for a job or commercial project - looking for a high experience real-estate marketing partner to work on revenue sharing model together. [link] [comments]  |
| Do buyer’s agents talk price with the listing agent generally? Posted: 07 Aug 2020 10:02 PM PDT I have an agent who tells me what she thinks a house will go for, and then says a bit later that she talked with the listing agent who agreed that the seller probably won't sell for below that amount. I would rather my agent not discuss price with the listing agent before I even think of my offer since I think it sometimes gives them a wrong target (especially if I have the funds to pay more, but my first offer is lower). Am I wrong? Is this a widely accepted practice? Thanks in advance! [link] [comments]  |
| Owning to cost more then renting Posted: 07 Aug 2020 05:31 PM PDT Hey all, need an opinion. Using a burner account on this one. First time home buyer currently make $3,300 as an accountant with $0.00 debt. I am currently looking at a one bedroom apartment in the San Francisco East Bay for $260,000 at 2.3% interest and 25K down. The total monthly payments for the principal and interest, property taxes, mortgage and homeowners insurance comes to $1,400. In addition a $370 HOA fee brings it up to just under $1,800 per month which is 50% of my income even before utilities. However at 2.3% interest in the long run the payments won't keep with inflation and would feel cheaper over time. I currently rent in San Francisco in a room for $950 which is cheap. Do you think it be better to purchase the apartment or continue renting? [link] [comments]  |
| Tax returns during closing time.. Dumb question Posted: 08 Aug 2020 01:00 AM PDT I'm in the process of buying my first home. I see as one of the requirements in closing time to have "Federal tax returns for the most recent two years". 2019 I filed with Turbo Tax, I got my state/ federal refund and everything. 2018 however I couldn't file it through TurboTax since it was more than 1 year. It did allow me to prepare the taxes so I just printed and mailed it to the IRS myseld. It's been 3 months and I still have not received my refund for neither state /federal. Does this mean I don't have my 2018 returns or I do since they were prepared by TurboTax but not send electronically by them? [link] [comments]  |
| Posted: 07 Aug 2020 04:13 PM PDT Long story short, I got into looking for a rental investment and am now looking to just downsize. My agent is someone I have never seen in person, and so far has just submitted my offers to houses, of which none I have won. I did sign a contract that I would use her until December, but quite frankly, she sucks. Apart from never actually meeting her (her assistant walks the houses with me), every house I ask her about whether it be a desirable area, type of build, or age of the house, she always gives me a pessimistic remark, so I don't walk houses I'm highly interested in because she says it's a risky investment. One house, which was a modular build, she told me my lender would never allow until I threw a fit and emailed the lender of which the lender told me I was good to go. So far I've tried to see her pessimism as wisdom, but I'm wearing thin. I feel as though her wisdom is folly after the debacle with the module build. Either way, now I'm thinking of just going with a new build for homestead and not using a realtor until I need to sell my current house. I don't want to use her at all. We have an agent friend who I'd rather help out and had also said he'd give us some leniency on the commission. I haven't told her the change in plans. Again, I've never actually seen this lady in person and other than press some buttons from her computer screen, hasn't done Jack shit for me. If I bought in my desired neighborhood, I'd buy a contract in October-ish. My agent contract ends in December. Since I'm not exactly buying the house while under her contract, would I sill HAVE to use her? The house will be finished mid-summer next year, which is also when I'd sell my current house if all goes according to plan. My SO told me to break up with her because she's been unsatisfactory, but I'm rather unconfrontational if I could avoid it. [link] [comments]  |
| Short term 401k loan to pay off first mortgage between buying second home and selling first? Posted: 07 Aug 2020 03:08 PM PDT We are looking to buy a new house for our recently expanded family. We owe about 24k on our current house (valued around 85-90k) but we want to buy the next house and then list this house after moving so there will be an overlap of at least a few months where we have 2 houses. The reasons for this are convenience, being able to have more competitive offers (not contingent on selling house) and not wanting strangers coming into our house showings and then coming back in with our baby in this age of covid19. The biggest problem I see is getting the second mortgage while still on the hook for the first (carrying 2 mortgages and student loans pushes the DTI ratio). We have the savings outside of the 401k to put down 10% and still not touch our emergency fund and have about 10k for closing costs so we don't have to have those covered by a seller or rolled into the mortgage. So I would take a 401k loan to pay the balance of the first mortgage and put it on a 5 year repayment plan. But we would pay it back with the money we get from selling the house as soon as that happens. So hopefully just a loan for around 6 months or so. Our budget can easily afford the 401k loan payments and the mortgage payments for the new house indefinitely in case it takes a couple of extra months. We also can cover the insurance and tax payment schedule on the current house on top of that since it will no longer be covered by the escrow on a mortgage. Anyone have any experience doing something like this? I did check with my 401k provider and there is no issue paying off the loan early. There is only a $75 origination fee and we have a total of about 145k in there right now. Figured it would be good to get some outside opinions in case I'm missing something. Yes waiting and paying off the house would make the most sense. But we have outgrown this house and need more room as our baby (toddler now technically) gets more mobile by the day. I could always find an excuse to stay in this house because it would be better financially but at some point the financial positives are outweighed by the negatives. For us personally we are hitting that point now. [link] [comments]  |
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