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How To Handle Having Two Mortgages in Denver Colorado

Posted on: August 26th, 2017 by , No Comments

having two mortgages in

Stuck with two houses and juggling how to handle having two mortgages in Denver?

Having two mortgages in Denver may not be an uncommon situation here. As soon as you want to buy a house, you’re racing against the clock to make a move on your dream home upgrade from all the competition. Most of the time you think as fast as you moved on your new home is how fast your old home will sell simultaneously.

Let’s get into what you can do if you’re stuck with having two mortgages in Denver!

Make Sure You Have A Good Plan

Now is the time to be extremely frugal. No more spending money on impulse items for a few months. When having two mortgages you should have your old home payments saved at least 3-6 months ahead of time. The more the better of course. You got to remember you’re currently paying for two houses at this point. You also have the principle, interests, taxes and insurance on your new home.. the down payment and earnest money as well.

Financial Solutions To Having Two Mortgages in Denver

If you made a decision on a deal you couldn’t pass up and you know it’s the dream home you’ll retire into, you can figure out way to get some cash to fund both of your properties for the time being until the old home sells. Please seek professional counsel financially and legally before making any final decisions in your situation.

  • Friends and Family: Friends and family can always help, although this one is definitely going to be the hardest if you don’t hold your end of the agreement in paying them back. It’s probably common sense that you only borrow what you need that you can pay back from the equity of selling your old home. One way to solve having two mortgages in your situation.
  • HELOC: A home equity line of credit is a loan in which the lender agrees to lend a maximum amount within an agreed period (term), where the collateral is the borrower’s equity in their house. This works like a bridge loan. You might be able to secure a line of credit if you have equity in the house you haven’t sold yet. You can borrow up to a certain amount as necessary.
  • Bridge Loan: A bridge loan is a temporary, short-term financing option created to help homeowners and real estate buyers secure funding and allow for transition time when selling one house and buying another. This will bridge the gap between your new mortgage and the sale’s price of the house. The options vary and there are 6 types of bridge loans. Bridge loans are more expensive compared to equity loans as well.

You Can Find a Tenant

You may feel like a newbie in doing this but everyone has to start somewhere. Becoming a short term landlord may be a great option if you find a friend, relative or tenant to rent out the property on a month to month lease until it sells. It may be much better than fixing up your old home just to make it sell quicker and nobody wants to pay Realtor commissions if they don’t have to.

What Can We Do To Help?

We run into this situation often and it may be best to just sell your house to an investor. We can arrange a post occupancy for you to reside in the home for a set amount of time in case you haven’t closed on your new house yet. Even if you don’t rent out from your old home, you may be willing to stay in a short term rental in an apartment just so it’ll be easier to save for a new house a year or more down the road. No matter what your situation is, if you feel you may be stuck having two mortgages in Denver, you can find a solution!

If you’d like to be done with your old home sooner rather than later, give us a call to see what your home is worth with a cash offer. Call us today for a free consultation 303-558-5843!

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