Quote:
Originally Posted by fundmark19
It's not fraud if you have renters in place by the time mortgage funds! Also if you are locked in for 5 years that gives you 5 years at a good interest rate and you can start sorting everything else out over that period if rates go crazy high.
If history repeats its self and things do spike. They level off over a 5 yr period. So by locking in at a crazy low rate you can afford now if something crazy does happen it should leveled off to a more respectable amount at the end of your term. I could easily afford 10 percent rates. 20 on the other hand I would need to have a couple roomates. But still do able in a worst case scenerio
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Very interesting perspective. Even at a crazy low of 3.89 over 5, which is what I just did, in 5 years you will not have enough paid off to negate a huge spike in interest. Plus it's unknown if that spike will devalue property to the point where you are underwater.
If your going to try and snow the bank, put your house up for sale, and buy the other. Once you have the other mortgage take your first house off the market. You'll still need a downpayment, but that downpayment is protecting the bank and the buyer.
Another option is to partner with someone (mom and dad) in the new property. They provide the downpayment, or co-sign, you make the payments.