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Some advice needed


Capepuffin
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If I sell my house and make a 200k profit, should I put all of that money into the new house? Like if I buy a house that is 320k, should I put the 200k down and take out a mortgage for 120k? Or should I find a less expensive house.

I really want a less expensive mortgage. I would like to pay around $700 a month (I am paying $1400 now at 7.9%) or maybe a little more.

So If I found a house that was around 260k, put $200k down that would leave me with a 60k mortgage.

Someone told me not to put all of the money into the new house and I can't remember why.

Any advice? Of course the houses that I am interested in are around 300k!

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You should check with a tax person on that one one. I think that if you don't roll the profit into another home in 18 months or so, then you have to pay a capital gains tax on it, but I am not a tax guy.

I will tell you that if you only need a 35% LTV loan, you will be able to get one with no problem.

Charles

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Thanks charles! I'll have to ask a tax pro in my area. But from what I recall, I don't think that you have to pay a capitol gains tax on selling your primary residence. My parents moved not to long ago and I recall that my dad didn't have to pay. I'll call him and find out.

get a loan no problem but...at what interest rate? Me and DH's fico are both at 650 or slightly higher.

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FYI - I found out that you don't have to pay capitol gains tax if you live in the house for no less than 2 years. I think it is 250k per individual. So a couple would not have to pay CG tax on anything up to 500k, individual 250k.

It use to be a 1 time deal years ago. Once in your lifetime you could take the profit from your home and pay no tax. Now it has changed to what I mentioned above.

So live in your house at least 2 years to reap the benefits of not having to pay CG tax and pocket your profit! :D

Another question for you charles:

When applying for a mortgage, is it best to have just my DH apply? I have a CH7-BK from 4 years ago, but otherwise my credit is good. Paying all my CC on time including my current mortgage. As stated above I am around 650.

By having the 4 year old discharged BK, will my rate be higher?

Right now I have a lousy credit fix program. It is an adj rate after 2 years! Right now we are at 7.99% interest. So I want to get out of this mortgage and into a fixed rate.

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Very true, the month you are past your 4 years discharge date, you are good to go. What was your score 2 years ago-I hope you remember, because it seems that is what it takes to go from having a sub-prime "band-aide" loan to a great fixed prime rate loan.

Thanks in advance for the feedback

Charles

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My score when we refinanced was 610 and my DH's was I think around 598! That was Nov. of last year. At that time I had 1 charged off non paid account and my BK was 2 years old. I also had another non paid charge off on my CR but it was not mine. I do not know what my score was 2 years ago, but I know it was horrible!

Through the bandaid loan, we were able to start fresh (on time payments) and pay off my charge off account.

Of course all of this was before I knew about credit repair!

My DH basically did not have much credit. He had our mortgage on his report which we were very delinquent on. That mortgage has been completely deleted from all 3 CRA's (Thank God!) That mortgage was not in my name. So when we refinanced, we did it to save our home and catch up.

We refinanced less than 1 year ago. So we would have to wait until Nov. of this year to sell. Otherwise penalties!

Definetly going with a diff. mortgage co. I really didn't feel comfortable with the company that we used. But we were stuck and did not have much of a choice. I wasn't about to lose my house!

This Mortgage Co told me that to get the best rate we would have to be around 720!

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