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Christopher Gianlucca
March 05, 2020
What can I do if I am trying to buy a new house but I have a current mortgage?
So long story short, I got a mortgage 10 years ago and got my current house. The mortgage is fixed for 20 years. But my job is requiring me to move to Chicago - I live in Jacksonville now - and I'd rather just get a house there. Since selling my current house might take a bit of time, is there any way a bank can finance a new mortgage until I can pay them the full amount of my Florida house?
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Kreditiweb
Asesor financiero
March 05, 2020
Kreditiweb
Asesor financiero
March 05, 2020

Hello Christopher,
For your situation, there is another option besides a mortgage loan, which is to get a “Bridge Loan”, that can be a potential solution. A.K.A. bridging loan swing loan, gap financing, etc. It is a short-term loan until you can secure the mortgage - once you sell your previous home. It allows the customer to cover current expenses by providing immediate cash flow. Bridge loans are up to one year, have relatively high interest rates and are usually backed by some form of collateral, such as real estate or inventory. So, this loan can help you cover the payments required for purchasing your new home until you sell the one you already have.
To get one of these products, the borrower has to use the equity of the previous house - or another collateral -for the down payment of the new house. This will allow you to have more time to sell it to a good buyer and avoid rushing the process.
The downside of it is that these loans come with higher interests than other loans. Plus if you haven’t finished paying your previous mortgage, you will have to make 2 payments per month until your home is sold.
Either way, we consider this option as the most beneficial for you since it allows you to purchase the new house while you get a good proposal for your previous house - to have a piece of mind and avoid losing money.
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