Comments for Big Financial Tips and Talk

Comment on How do I finance a house down payment while I am still making payments on the home I am trying to sell? by dzwreck

dzwreck — Thu, 26 Jun 2008 13:24:34 +0000

Good evening. Your best option is going to be to do an 80/20 combo loan. This way you will finance an 80% first mortgage and a 20% second mortgage/home equity line of credit. In essence this is a 100% loan but you can use the proceeds of the sale of your home (whenever you sell it) to pay off the 2nd mortgage/home equity line of credit.

Another option is to borrow from a 401k if you have one. You can take a loan out on your 401k and simply pay that money back once you sell your home. If you have an IRA, you can take out a 60 day loan on that as long as you have it paid back within 60 days, which could potentially be risky if you can not pay it back within that time.

Last option, and least recommended, is to borrow from credit cards, take out a personal loan, borrow from family, etc… This may be a quick fix and can possibly solve your short term problem. Many credit card companies offer specials on cash advances periodically, so call around and ask your credit card companies if they have anything going on right now.

As someone else stated, you should have had a clause in your contract that stated you buying the home was contingent upon selling your home. Although some sellers will not accept bids with this clause in their contract because this could potentially place them in a bind as well if you need to back out. Best of luck and I hope the information helps. See the links below about down payment ideas.

Comment on How do I finance a house down payment while I am still making payments on the home I am trying to sell? by Vin

Vin — Mon, 23 Jun 2008 15:12:51 +0000

If you have significant equity in your current home you could do a very low interest rate home equity line of credit. Use that to make a down payment on your new home. It’s risque and I wouldn’t usually recommend it but it sounds like you’re locked in on the new one. Ask you Realtor (If you have one) to request a delay on the closing date. If the seller agrees, it can buy you time to resolve this. Or, if the gamble is too much. Back out of the deal (with potential consequences). Read your contract thoroughly. How much was your deposit and what are the penalties for breaching the contract? Or, you could do 100% loan as an 80/20 split and if you have enough to cover the 20% second loan, pay it off once you sell the former home. You might have to pay for mortgage insurance until you pay the 20% off. The risk there is that if you don’t sell quickly, you will have to consider the carrying cost of the first home that has not sold. It’s a tough scenario you have there. Best of luck!

Comment on How do I finance a trip through Latin America. Are there easy ways for english speakers to find work? by tejasred2003

tejasred2003 — Sat, 21 Jun 2008 20:50:50 +0000

Financing…i don’t know just put it on credit cards or take out a loan and send payments home monthly and have a family member pay it as the note comes due each month. As far as a job I don’t know exactly what part of Latin America you are going to but while I was on vacation in Mexico I was offered a job at a Howard Johnson Hotel on the beach making $60.00 a day which is awesome pay because most people make $50.00- $100.00 a week even with a degree in mexico. Hope this helps. I didn’t take the job I love my home too much here, but it was interesting.

Comment on How do I finance a house down payment while I am still making payments on the home I am trying to sell? by Henry

Henry — Fri, 20 Jun 2008 20:42:49 +0000

When you make an offer to buy the new house, you should include a subject clause - “This offer is subject to the buyer being able to sell his house on or before….”. Your Realtor has made a big mistake!

Now your best chance is to use your home to get a loan to make the down payment. If this is not possible, you may want to talk to the seller and see if he can extend the closing date until you sell the house. More often than not, the seller would cooperate, because it is too expensive and pointless to take legal action when you do not have the money to close.

Comment on How do I finance a trip through Latin America. Are there easy ways for english speakers to find work? by ruisenyor

ruisenyor — Fri, 20 Jun 2008 09:23:44 +0000

Wherever you go, look up “(English) Language Schools” in the phonebook.
You may not be allowed to work without a permit, but schools - always in need of native speakers - may/can/will find a way around it.

Comment on Is it better to finance a used car through a bank or through a dealer? by Scott D

Scott D — Fri, 20 Jun 2008 06:55:38 +0000

There’s no right or wrong answer to this question. The best thing you can do is shop around and weigh your options.

Generally speaking, if you can find financing from a source other than the dealership, be it a bank, credit union or consumer finance company, you’re likely to wind up with a better interest rate.

In the interest of disclosure, I happen to work for FirstAgain, an online consumer lender, and without hesitation I can say that our auto loan rates are far superior to what you’ll be offered at a dealership.

But the lowest interest rate doesn’t always translate into the best overall deal. Naturally, the dealership wants you to use the in-house financing option, so they may be inclined to sweeten the pot by offering to lower the sale price or include upgrades at no extra charge in exchange for your agreeing to finance through them. In that sense, you can potentially use financing as leverage to create a better overall deal for yourself.

So really it all depends. Like I said upfront, the best decision you can make is the decision to shop around and consider all available options. That’s the surest way to wind up with the loan that’s best for you.

Comment on Is it better to finance a used car through a bank or through a dealer? by http://Financeinformant.com

http://Financeinformant.com — Fri, 20 Jun 2008 02:37:55 +0000

generally banks will give you a lower finance rate over dealers however, it will be slightly higher than a new car loan because its a used car.

Comment on How do I finance a house down payment while I am still making payments on the home I am trying to sell? by Jonathan B

Jonathan B — Thu, 19 Jun 2008 10:45:03 +0000

Hi:

It looks to me like you need a short term loan. Assuming you have a good amount of equity in your current house, get a “hard money loan.” It is very expensive, but you can get money over night and it can save your deal.

You get a hard money loan from a private investor. In many cases they can charge 4 points and 14% interest. With that, all terms are negotiable.

Most mortgage brokers will be more than happy to find you such a loan.

I wish you much success.

Jonathan

Comment on How do I finance a house down payment while I am still making payments on the home I am trying to sell? by soldit4them

soldit4them — Thu, 19 Jun 2008 06:03:33 +0000

You can make a privet loan from your bank. Most of the time they will do this kind of loan because there is equity in your first home. Or you can take out a line of credit on your first home. You really should talk to your mortgage person or a lawyer.

Comment on Is it better to finance a used car through a bank or through a dealer? by brighteyes

brighteyes — Tue, 17 Jun 2008 13:03:32 +0000

Banks tend to offer lower interest rates, but sometimes dealerships will have special offers. Shop around for the best deal. The best rate will depend on where you go.

Here’s a link to help you with financing: