Home Equity Loan
My father quitclaimed a home to me.The value is approx 500,000 with about 170,000 left to pay.What should I do
I'm paying for the mortgage.. Should I get a loan for only 170,000? I have a credit score of 796 and I only have 599 owed on my Credit card. Not sure what to do with the Equity. I'm renting out the house for $1000 above the mortgage. This is in California. What kind of loan should I get and could I just finance the 170,000? Should I pull out the equity and invest it somewhere? I'm 32 years old with a wife and son and have no retirement savings other than this house to work with. Please help.
Public Comments
- see if you can sell it. but do it fast , the market is not good. you might be better off in california , but elsewhere , the housing bubble is here. home values are going way down. it's more of a buyers market than sellers. i would unload the house and get the money into something more stable for your future.
- If I were you I would sell the house and take the cash and re-invest it. I wouldn't trust the housing market right now given the recent problems. Of course it might be difficult to sell at this point in time but it wouldn't hurt to try... I would hate to see a 750k home drop in value whee you might lose the equity due to market conditions and problems. Plus renting is great when you have good renters but throw in some repairs and bad renters and it becomes a lot of hassle... Good Luck on your difficult decision.
- if you are not in a bind making this house payment i would leave everything thing the way it is right now== i would try to put some of the rental money away (at least 6 months worth of payments) in case the renters move out -- i believe within three or four months the markets will settle down and than i would revisit this question!!!
- I'd get a fixed rate mortgage, and let the rent service the debt. Go 15 years on the mortgage if you can. That means by age 50 you will have a half-million dollar house that is PAID FOR... Take the remainder of the rent proceeds ( you'll be paying income tax on them), and invest THAT part of the income stream. You are thinking along the right track, but dont get greedy and try to leverage yourself by leveraging the equity to try to make bigger bucks on the stock market. It may take you longer to get there, but you will, as you already have a MAJOR bullet in your gun with a house with $330K in equity....
