Want to close on new home before the old home is sold

Guest 0.10 Dollars($)

My new home costs $200,000 and my current home is listed at $188,000 although it has not been sold yet. I have been approved by couple of banks for 100% interest only mortgage with a fixed rate of 6.625% for 12 months. I am about to close on a new home in 30 days. Is this a good deal? or should i take a bridge loan.

Samantha · Posted: Sat Nov 12, 2005 3:26 am Post subject: RE

Hi Shelly,

Welcome to MortgageFit Forums,

If you will use the proceeds of the sale of your home in paying off your mortgage then it is not a bad deal.

You can also opt for a bridge Loan. The upfront fees and expenses can be little higher in case of bridge loans. But this is the best way to finance the closing of a new home before you have sold off the old property.

God Bless You.

Thanks,
Samantha

Guest 0.10 Dollars($)

Hi Samantha,

Thanks for the suggestion. It helped a lot. Very Happy

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