Questions on buying a new home...Please help...

[SALvation]

I have a bunch of questions and need some advice. I got married in May and bought a nice condo with my wife. Our mortage rate is 7.125% and it is our first place. Now I am looking around and I see that rates are around 6.125 - 6.5%. I did some research and see that I could get a $200k house for about $1150-$1200/month. With our current mortgage and asc. fees, I am paying $1100/month. So for an extra $50-$100/month, I could buy the house we plan on spending 20+years in.

Now are the questions:

1. Is there a minimum that we have to live in the condo?

2. Would I be penalized for selling so soon or for taking 2 mortages in 2 years?

3. What do you do first, sell your current place or buy your new one?

Any tips would be greatly appreciated.

In case your wondering, this is the type of house I am looking at buying - Link

 

[RKS]

<< I have a bunch of questions and need some advice. I got married in May and bought a nice condo with my wife. Our mortage rate is 7.125% and it is our first place. Now I am looking around and I see that rates are around 6.125 - 6.5%. I did some research and see that I could get a $200k house for about $1150-$1200/month. With our current mortgage and asc. fees, I am paying $1100/month. So for an extra $50-$100/month, I could buy the house we plan on spending 20+years in.

Now are the questions:

1. Is there a minimum that we have to live in the condo?
Look at the actual wording of the contract. I doubt you have a minimum 'residental' requirement.

2. Would I be penalized for selling so soon or for taking 2 mortages in 2 years?
Wife takes care of this stuff. Your credit rating may take a hit. You may not be able to recoup your initial investment?

3. What do you do first, sell your current place or buy your new one?
Slowing economy + historical difficulty in selling condos=sell condo first. You can always add a contingency clause stating that the move out/sale date depends on when you move into your new home.

Any tips would be greatly appreciated.

In case your wondering, this is the type of house I am looking at buying - >>



nice house, good luck

 

[wedi42]

contact a mortage broker, they will be a lot of help in this area

but my thoughts are below:
1- no
2- no
3- both, you sell your condo with the same closing date as the new house

 

[Tauren]

1. Probably not.

2. You will effectively piss away closing costs, etc.

3. Put your condo on the market and start looking. Condo's are hard to sell.

 

[ajskydiver]

Is that the house you wish to buy as it is currently?

It looks a little rough around the edges...

~AJ