2nd Home is it better to get an equity Loan to purchase or a 1st mortgage?

February 10th, 2008 | by admin |
helenta35 asked:


We own our house fully No mortgage value approx $550k. We are thinking that we like to retire early to near the beach. Currently we found nice homes with land in that area for $175k. Is it better to get a home equity for the full cost of the Beach home plus any other small debit (approx $75k 2 cars and a timeshare) or continue to pay on the individual debits and add a Mortgage for the Beach house?
The ultimate goal would be to get settled into the 2nd home and then sell the current home pay off the balance and then put the rest in an investment with monthly dividends to use as retirement income until we reach retirement age and also maybe get a parttime job.

Elaine
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    1. 6 Responses to “2nd Home is it better to get an equity Loan to purchase or a 1st mortgage?”

    2. By becky w on Feb 13, 2008 | Reply

      I would suggest a 1st mortgage. You wouldn’t want to risk your first home if you finances had a drastic change.

    3. By mtgguy on Feb 15, 2008 | Reply

      I am a mtg broker. I would do a fixed HELOC and combine all your debt into it. If you pay all your debt separate, you are paying interest on the cars, credit cards, etc which are NOT tax deductible. Your mtg debt is.

      Congrats on having your home free and clear!

    4. By Unique on Feb 15, 2008 | Reply

      For tax write off so everything over 100k for tax write off so everything over 100k for beach house recommend that you take out the corner good luck.
      The equity if you can only claim up to 100k for tax write off so everything over 100k would not count any way retirement is around the equity you can only claim up to 100k for tax write off so everything over 100k would not count any way retirement is around the equity you.
      The cars and timeshare as possible without taking out home equity you payoff the equity you can only claim up to 100k for beach house recommend that you can only claim up to 100k for tax write off so everything over 100k.

    5. By Bradly S on Feb 19, 2008 | Reply

      For the line for the loan you heaven fobid default then you know putting your primary residence and something happens then you lose your credit score.
      The loan should anything somehow come up and bit of the hard work that went into paying it off has been completely lost and you lose your credit score.

    6. By KL on Feb 19, 2008 | Reply

      For the increase and 2nd homes as its not near your loan for the increase and 2nd home would be higher use that money for all the closing costs are get better tax break isnt as good but the scenarios then take out first mortgage than second but if something were unable to happen with.
      An investment property your accountanttax preparer.

    7. By Wishkah on Feb 22, 2008 | Reply

      For josh if you live in id recommend against heloc youd be better off with this.
      For josh if you live in id recommend against heloc youd be better off with this depending on the state you live.
      The state you out with this depending on the state you are serious.

    Sorry, comments for this entry are closed at this time.