Financing Your Next Move

Dated: April 12 2024

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Financing a move while juggling the sale of your current home and the purchase of your next one can be complex. Here are some effective strategies to manage your finances during this transitional period, including the use of two mortgages, bridging loans, and Home Equity Lines of Credit (HELOC).

Understanding Bridging Loans:

A bridging loan is a short-term financing option designed to bridge the gap between selling your existing home and purchasing your new home. This loan can cover the down payment and other expenses associated with buying a new property before your current one sells. It’s typically a fast solution but comes with higher interest rates and fees.

Using a HELOC:

A HELOC allows you to borrow against the equity of your current home. This can be an excellent way to finance the down payment on a new property. The key advantage of a HELOC is its flexibility; you can borrow as much or as little as you need up to the credit limit, and interest is only charged on the amount borrowed.

Managing Two Mortgages:

If you find yourself with two mortgages temporarily, budgeting is crucial. Ensure you have sufficient reserves to cover both payments for a few months. Consider renting out one of the properties as a short-term solution to help mitigate costs.

Other Financing Options:

Don’t overlook traditional loan modifications or refinancing your existing mortgage to lower monthly payments temporarily. Consult with a financial advisor to explore these options and their implications.

By exploring these financing strategies, you can make informed decisions that align with your financial situation and goals, ensuring a smoother transition between homes.

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Ryan Lephart

Your Trusted Columbus and Central Ohio Real Estate ExpertWelcome to Homes For Sale Columbus! When selling your home, Ryan Lephart, an award-winning real estate agent, is your premier guide to having y....

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