What are ways to avoid a double mortgage

Discussion in 'Buying & Selling Real Estate' started by Profit5500, Nov 22, 2014.

  1. Profit5500

    Profit5500 Senior Investor

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    I know that mortgage is that monthly bill you have to pay to keep a house. Every time you have a house a mortgage is what you have to deal with so if you got that good job then you are strapped. I remember I was watching a show on tv I think it was "Househunters" and there was one homeowner who did not move out of his house because he did not want a double mortgage. I want to know what are some tips that people can use to avoid a double mortgage. It is a important thing that I think that people should know before going off to buy his or her home.
     
  2. SteakTartare

    SteakTartare Senior Investor

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    I wouldn't ever bother with a double mortgage for a number of reasons. Frankly, those that were using their house as a savings account during the housing craziness were beyond foul hardy.

    As to the question, don't buy too much house, don't look at the equity as something you necessarily should tap in the form of a second mortgage and, for goodness sake, live well within your means to when bad things go down you're not stuck.
     
  3. Peninha

    Peninha Senior Investor

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    The best way to avoid a double mortgage is not get the first one... If we do get a mortgage we should organize our life and pay it, we cannot lose control over our finances.
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I think you're referring to the situation where you've bought a new house before the one you've been living in is actually sold to someone else?

    I think the best way to avoid this problem is to sell your current home first - wait until a buyer has actually had everything signed over to them. Either move into a cheap apartment or live with family or friends for a short period and keep your excess stuff in storage while you get started on the process of buying the new home.

    Many people will either not get final approval from any lenders or will otherwise change their minds at the last minute when it comes to buying from you.
     
  5. Muthoni

    Muthoni Guest

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    I thought that a double mortgage is when one has a primary mortgage and then one borrows against the house as well. Having a debt that accrues interest is very enslaving. I believe that one should only borrow money when it is absolutely unavoidable.
     
  6. crimsonghost747

    crimsonghost747 Senior Investor

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    Once again JR pretty much hit the nail on the head. Sell first, then buy. When looking to sell a house, it could take years. When looking to buy... it's up to you. Especially if you are a bit more flexible with how much you are willing to pay.

    There is nothing wrong with renting a cheap apartment while you make the transition. I know many people who did this and it worked out so much better. Sure it will force you to move twice instead of once, and pay a bit of rent to someone else, but I think that is far better than being stuck with 2 houses and paying mortgages on both. (something that few of us can realistically afford)
     
  7. shilpa123

    shilpa123 Banned

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    I would try my best never to pay a double mortgage. It is really a trouble that I would never get into. Always make sure to pay your rent on time to avoid any such trouble. I hope I never fall into such trouble.
     
  8. Gelsemium

    Gelsemium Senior Investor

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    I am already having a hard time paying my mortgage, so no way I would get a double one, that sounds to me like financial chaos. We need to wise up.
     
  9. pwarbi

    pwarbi Senior Investor

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    Everybody these days seems to want everything to happen right now. If you find your dream home but can't sell the one your in now, is it really worth paying two mortgages for however long it might be?

    While you might miss out on the home you want, my advice us to always make sure you sell, and have the cash in the bank before you buy.
     
  10. Sunflogun

    Sunflogun Well-Known Member

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    For me changing place is a huge responsibility, so I would never commit to further financial obligations if I was not 100% sure I could pay for it.
     

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