Loan Modification Forum - LoanSafe.org - View Single Post - How to buy another home same floor plan but $50,000 cheaper?

brunok · 07-25-2009, 05:59 PM

You can do it. The balance on your existing mortgage will be a considerable negative when a new lender evaluates your purchasing power though. You can eliminate some of this by renting your place to offset the payment on the first. I think all lenders now require a year contract for the lease before considering.

I looked into this and talked to a few lenders, we could do it but we'd be moving into the same level place because renting it would not cover the mortgage completely and we'd be floating at least another grand.

So subtract what you could reasonable get for renting from your mortgage payment. Then subtract the difference from how much you could get a loan for at %31 of your income. That's how much you are likely to get a new loan for.

The biggest hurdle is - the market is still heading down. You want to get into the same bind in 2 years?

07-25-2009, 05:59 PM	#3 (permalink)
brunok Member Join Date: Jan 2009 Posts: 7 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: How to buy another home same floor plan but $50,000 cheaper? You can do it. The balance on your existing mortgage will be a considerable negative when a new lender evaluates your purchasing power though. You can eliminate some of this by renting your place to offset the payment on the first. I think all lenders now require a year contract for the lease before considering. I looked into this and talked to a few lenders, we could do it but we'd be moving into the same level place because renting it would not cover the mortgage completely and we'd be floating at least another grand. So subtract what you could reasonable get for renting from your mortgage payment. Then subtract the difference from how much you could get a loan for at %31 of your income. That's how much you are likely to get a new loan for. The biggest hurdle is - the market is still heading down. You want to get into the same bind in 2 years?