| Building our home on family land....loan question |
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ima49er
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Joined: 29 Jun 2004
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| Building our home on family land....loan question |
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I am so worried about this--I hope someone who has been through this on either side can help. My husband and I were given 5 acres as a Bona Fide Gift. We are ready to build our home on this land, and we actually talked to a builder last night. Now for the bank part. We both have car payments, and we dont owe a whole lot on them, but it would be much easier to afford a larger house payment if these payments were gone. I had heard where a friend of mine used the extra "equity" (not sure if you call it this) to pay off her existing car loans and financed this into her mortgage. Has anyone ever heard of this being done?
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Thu Jul 01, 2004 12:14 pm |
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Andrew
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Location: Texas
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It's up to the bank and you, but it may be possible to do this. Equity refinances are very common. Your case is a bit different, but it seems that it should still be possible.
Paying off your cars would free-up more of your income to help afford a mortgage, but you will have to qualify for your loan with these loans, since you'd wouldn't be paying them off until afterwards, right?
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Sat Jul 03, 2004 3:13 am |
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sagetips
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| Stipulate for Car Loan Payoff |
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You should be able to stipulate that a portion of the equity borrowing goes to pay off the car loans at closing. It is not uncommon...ask your lender. Depending on how much equity you have, the interest rates on the car loans vs equity loan, and similar factors, this may make sense.
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Sat Jul 17, 2004 2:17 am |
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