Relocating out of state – mortgage on new house or HELOC on current?

Relocating out of state – mortgage on new house or HELOC on current?Relocating out of state – mortgage on new house or HELOC on current?
eeyowidoego asked 4 years ago

We have an opportunity to relocate out of state, to an area where housing market is very hot. Realtor pretty much says contingent purchase (contingent on sale of current house) is impossible. We have enough equity in current house to pay cash in new location. 

 

As as I see it, we have 2 options

 

1) get a HELOC on current house and use fund to pay for new house. Interest rate doesn’t matter since we don’t plan on keeping the house for very long

 

2) get loan on new house while I still have current house. 

 

Pertinent info:

 

Value of current house:  1,400,000

Loan:  815,000

Mortgage pmt:  $ 3,945/month

car loan:  $ 747/month

 

 

90% HELOC will get me $ 445,000 

cash in hand:  100,000

 

 

house in new state: 500,000

 

 

Total income:  216k/year

 

 

 

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