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We’re moving due to job commitments. We have excellent credit and a decent salary and no debt beyond the mortgage and a small car loan. An apartment at the new location isn’t an option (ok – it’s the VERY last option because we have 7 animals I would do just about anything to keep). We’re looking at buying a small house, but that will mean 2 mortgages. If I do a “calculator” for how much house I can afford, it’s over $ 500,000. Our current mortgage is under $ 300,000. We’re looking at a house for $ 100,000. It will be tight, but doable. Is this a good idea? I’m hoping the first house will sell soon, but you never know in this market. Should we come up with a different plan?

5 Thoughts on Is 2 mortgages a good idea?
  1. Reply
    C B
    July 26, 2011 at 4:45 am

    Well if you had an excellent credit score AND an excellent salary, I’d say go for it. It also sounds like you don’t really have a choice. If you could wait until the sale of the current home, you’d obviously be in much better shape. Tough scenario. Best of luck.

  2. Reply
    donald e
    July 26, 2011 at 5:22 am

    if the debt to income works it is doable to get a second mtg. on a second property. be prepared to sit on the first house depending on the area for 6-12 months it is a buyers market out there, and as long as you are comfortable with 2 monthly payments you will be ok. Have done this myself and it worked well, eventually leased purchased the first house as it wasn’t selling an a year later the lessee bought the house from us. u might want to consider that if the unit doesnt sell, but be sure to get a sizeable deposit non refundable if they dont go through with the purchase, and check everyone’s credit even if u rent it out. once in they are tough to get out. lol gl

  3. Reply
    Mary B
    July 26, 2011 at 5:54 am

    I think I would get rid of both before you get into a huge financial mess.

  4. Reply
    ESP123
    July 26, 2011 at 6:52 am

    My husband and I bought a new home because it was a foreclosure, and a really great deal. Three years later, we still have not sold our old home, and we still have two mortgages, and two annual taxes to pay on two homes, and two home ins to pay… Our only debt is our two homes. We have no credit cards, no car payments, or any other debt.. It is a pain to keep up with both homes… If I could go back, I would not have bought our second home until I sold my first home.. But you do what you have to do…

  5. Reply
    godged
    July 26, 2011 at 6:58 am

    Can you rent your first home until it sells?

    I am afraid that if you have to ask this question, you probably cannot afford two mortgages. If house #1 doesn’t sell, you could get into a heap of trouble in a hurry.

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