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Risk of "lifting a leg"...... Posted by andy [Email] (#759) [Profile/Gallery] (more from andy) on Sat, 20 Mar 2004 09:39:27 In Reply to: WOT: Bridge loans and other options..., Cryptical, Sat, 20 Mar 2004 08:17:15 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Unless your cash reserves are extensive, there is a risk that you could commit to a bridge loan to buy your CT home pending the sale of your CO home and then something happens to cause the CO home market to contract and buyers evaporate. Then you have to carry both houses a while.
You essentially have three loans in this period, your old mortgage, your new mortgage and a loan against your soon-to-be-freed-up-$50K equity that is your downpayment on the new home. If you can't sell in CO without taking a beating, you have to carry the bridge loan. IIRC those rates are higher than regular mortgage rates.
And all this is before considering job transfers and all.
If you have no compelling reason to move in a hurry (ie. job transfer), I would do what it takes to sell in CO and then make your move. By the way, I'm in New York and the housing market in NJ/NY/CT is out of this world expensive. But I assume you know that.
posted by 216.179....
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