Mortgage
I am 69 and have an adopted young grandson with a disability. I am moving my family from Washington to be closer to the rest of our family in Illinois. I have found a home that will close before I have sold my current home. The home I am purchasing is about the same price as what I can expect to receive for my current home. I have explored bridge loans, and I am thinking about taking out an equity loan on my current house to make payments on the new home until my Washington home sells. Taking a regular loan for a period of say 3 months is eating up a great deal of money in closing costs. I have a 401K also. Should I take it from there until my home sells? Thank your for your help and insight.
Terry Says
Whew — that is not a good situation to be in. Is there any way you can delay the closing on your new home? Have you sold your old home –but just have a later closing date?? Have you had any offers?? Are you just “dreaming” about the price it might bring? Is it listed already, and how long has it been on the market?
You really don’t want to — and obviously can’t afford to –own both homes at the same time.
It’s like having one foot on the boat and one foot on the dock when things start moving!
But yes, I’d explore whether you have the income to qualify for a home equity loan on your current house. It will be costly to establish, but I don’t see any other way of making this work. And it is financially dangerous– if rates go up, or an economic slowdown occurs and you cant get your old home sold!
The 40l(k) should be your last resort. Assuming you’re retired but haven’t rolled it over, you might not be allowed to take a loan from it– And a withdrawal will trigger taxes! Consult your accountant on the implications of that.
