How would you finance a vacant land purchase with this scenario?
Posted in Renting & Real Estate on 12/16/2008 02:57 am by admin
Michael G asked:
I have a current mortgage of $135,000 on my primary residence. This single family home is valued at $300,000. I want to buy a piece of vacant land for $145,000. I have $40,000 to put down on it, so would need a loan for $105,000. I’ve been told to go with a home equity loan or HELOC. I’ve only had experience with fixed rate mortages so a variable rate kind of scares me. Any suggestions? Thank you.
Some details, my current mortgage is at 5.3% fixed so I don’t really want to touch it. Also, because this is vacant land I’ve been told that the interest rate will be around 8% for a fix rate loan on a non-residence property. Hope this helps.
Caffeinated Content – Members-Only Content for WordPress
I have a current mortgage of $135,000 on my primary residence. This single family home is valued at $300,000. I want to buy a piece of vacant land for $145,000. I have $40,000 to put down on it, so would need a loan for $105,000. I’ve been told to go with a home equity loan or HELOC. I’ve only had experience with fixed rate mortages so a variable rate kind of scares me. Any suggestions? Thank you.
Some details, my current mortgage is at 5.3% fixed so I don’t really want to touch it. Also, because this is vacant land I’ve been told that the interest rate will be around 8% for a fix rate loan on a non-residence property. Hope this helps.
Caffeinated Content – Members-Only Content for WordPress