Quote:
Originally Posted by aljetmet
I'm an adocate of payin off the bond. I ve indicated that numerous times.
I personally would not use investment money to pay off. But for those buying now and getting a mortgage, rolling the bond into the mortgage is IMHO a good idea.
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I don't think that's possible. Let's take an example: a new designer home selling for $230,000. A 20% down payment (or $46,000) is necessary to qualify for a mortgage. Now the buyer now has a $184,000 mortgage. Let's say the bond is $20,000. The bond can't be added in to make a $204,000 mortgage because then the mortgage would be almost 89% of the home's value. The lender isn't going to have a greater loan to value than 80 to 100.
Perhaps I'm missing something.