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second home mortgage

By Terry Savage on September 25, 2021 | Housing / Real Estate

I want to purchase a second home in Florida (yes I know the market is very crazy down there). I own a home in Lake County Illinois that is fully paid for and valued at about 500K. I have a 600K preapproval for a mortgage to purchase the second home without selling the Illinois home. The problem is that Florida market has started to turn into a “cash” market because it is a sellers market. I don’ t have enough liquid cash to purchase the second home. My question is would I be better off taking out a cash back refinance (about 300K) on the Illinois home and couple that with the $200K cash I do have and thus become a “cash” buyer? I appreciate your help and enjoy listening to you on WGN Radio.

Terry Says

As long as you have a written pre-approval,good in Florida, it’s as good as cash. It means there is no mortgage contingency on your offer. So don’t go through all those gymnastics. Read my latest column on housing valuations. The market will settle down.

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