Quote:
Originally Posted by Pturner
You could use the primary mortgage if you could borrow enough to pay the bond at closing and/or reducing your loan down payment.
This is easier said than done however, because a lending institution might only loan 80 percent of the lending institution's appraised value of the home, and require a 20 percent down payment.
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Very astute of you for this caveat. However, most TVers have big down payments, or have the means to pay in full. I would venture to say for most this would not be a problem but of course everyone has their own financial situation.
If for a frog that did not payoff originally their is always other options such as a home equity but that has risk as rates will go up. To get a mortgage for the first time just for the bond however may not be prudent either as the cost of the mortgage origination is something to consider. I guess I make my recommendation based on of 30 mortgage rates that are currently way below 5%. So, if you plan on borrowing for the home might as well finance the bond as well.