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Post by badbrad on Nov 30, 2020 20:34:26 GMT -6
So at home we own 2.5 acres. The guy behind us who owns 6 acres just had a heart attack and died. He only had a little trailer that he lived in. I can't see the land being much of a draw to most people. The land is appraised at 21,000 and improvements being his trailer and septic are valued at 5,000. I want to buy that 6 acres. What would be my financing options? Could I get a separate loan from a farm credit place? Can I refinance my current mortgage and include it? Does it matter to the bank I want a loan for adjacent land to buy? What is the best way to approach this?
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Post by benmnwi on Nov 30, 2020 20:43:40 GMT -6
you could get a second mortgage against your house and use that to buy the land. That's what I did when I bought my Wisconsin property. Interest rates are really low now, but that also seems to be making overpay for land in this area.
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Post by kl9 on Nov 30, 2020 20:47:12 GMT -6
Yes to all of it but will depend on amount of equity in your home.
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Post by batman on Nov 30, 2020 20:49:14 GMT -6
You could leverage your new tractor. Wait. Maybe not.
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Post by biglakebass on Nov 30, 2020 21:50:51 GMT -6
I was going to say... if you didnt have that new tractor.....  |
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Post by terrifictom on Dec 1, 2020 6:00:55 GMT -6
Brad if you have enough equity in your house you could refinance for more to include what it would cost to buy the adjacent property.
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Post by sd51555 on Dec 2, 2020 22:07:50 GMT -6
So at home we own 2.5 acres. The guy behind us who owns 6 acres just had a heart attack and died. He only had a little trailer that he lived in. I can't see the land being much of a draw to most people. The land is appraised at 21,000 and improvements being his trailer and septic are valued at 5,000. I want to buy that 6 acres. What would be my financing options? Could I get a separate loan from a farm credit place? Can I refinance my current mortgage and include it? Does it matter to the bank I want a loan for adjacent land to buy? What is the best way to approach this? Did you come up with an idea? Something like that, I might consider a 401k loan if you can pay it off quickly enough, especially if you have some bonuses coming. I wouldn't want to be outta the market for years, but if you could whack it out in 2 years or less, it might not be a bad idea. When I did my land loan with farm credit, I got charged almost $1500 in fees to appraise and originate. Then throw in some interest paid, and you'd be at a 15% fees and interest premium or more after your principle. You also gotta consider some wizardry. The market is at an all time high right now. If it stays there or goes down, this is a genius move. You'd be selling high and repaying flat or lower and keeping all the interest for yourself. If the market goes up 40% over the time you're paying it off, it ain't such a genius move. That said, I also don't know a thing about refinancing a home or a home equity loan. Maybe there are better ways. I'd watch out for fees more than anything else. |
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Post by nhmountains on Dec 3, 2020 7:17:31 GMT -6
Brad if you have enough equity in your house you could refinance for more to include what it would cost to buy the adjacent property. That’s what I’m doing right now. There’s $2500 in fees but, I’ll never be able to borrow money this cheap in my lifetime and the fee will never go away whether I buy now or later Our payments will end up being the same as they are now. So I’ll have money on the side line for when the right property pops up. |
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Post by badbrad on Dec 3, 2020 7:38:17 GMT -6
So at home we own 2.5 acres. The guy behind us who owns 6 acres just had a heart attack and died. He only had a little trailer that he lived in. I can't see the land being much of a draw to most people. The land is appraised at 21,000 and improvements being his trailer and septic are valued at 5,000. I want to buy that 6 acres. What would be my financing options? Could I get a separate loan from a farm credit place? Can I refinance my current mortgage and include it? Does it matter to the bank I want a loan for adjacent land to buy? What is the best way to approach this? Did you come up with an idea? Something like that, I might consider a 401k loan if you can pay it off quickly enough, especially if you have some bonuses coming. I wouldn't want to be outta the market for years, but if you could whack it out in 2 years or less, it might not be a bad idea. When I did my land loan with farm credit, I got charged almost $1500 in fees to appraise and originate. Then throw in some interest paid, and you'd be at a 15% fees and interest premium or more after your principle. You also gotta consider some wizardry. The market is at an all time high right now. If it stays there or goes down, this is a genius move. You'd be selling high and repaying flat or lower and keeping all the interest for yourself. If the market goes up 40% over the time you're paying it off, it ain't such a genius move. That said, I also don't know a thing about refinancing a home or a home equity loan. Maybe there are better ways. I'd watch out for fees more than anything else. I wrote them a letter here early this week. Will follow up maybe next week sometime. Hopefully can work out a price/deal with them. Then I will go to my bank for options. |
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Post by badgerfowl on Dec 3, 2020 8:15:09 GMT -6
So at home we own 2.5 acres. The guy behind us who owns 6 acres just had a heart attack and died. He only had a little trailer that he lived in. I can't see the land being much of a draw to most people. The land is appraised at 21,000 and improvements being his trailer and septic are valued at 5,000. I want to buy that 6 acres. What would be my financing options? Could I get a separate loan from a farm credit place? Can I refinance my current mortgage and include it? Does it matter to the bank I want a loan for adjacent land to buy? What is the best way to approach this? Did you come up with an idea? Something like that, I might consider a 401k loan if you can pay it off quickly enough, especially if you have some bonuses coming. I wouldn't want to be outta the market for years, but if you could whack it out in 2 years or less, it might not be a bad idea. When I did my land loan with farm credit, I got charged almost $1500 in fees to appraise and originate. Then throw in some interest paid, and you'd be at a 15% fees and interest premium or more after your principle. You also gotta consider some wizardry. The market is at an all time high right now. If it stays there or goes down, this is a genius move. You'd be selling high and repaying flat or lower and keeping all the interest for yourself. If the market goes up 40% over the time you're paying it off, it ain't such a genius move. That said, I also don't know a thing about refinancing a home or a home equity loan. Maybe there are better ways. I'd watch out for fees more than anything else. Anything you do will have fees. I believe HELOCs are considerably less than a traditional home refi though. |
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Post by DoubleLiver on Dec 3, 2020 18:36:30 GMT -6
Get to your bank now. Be ready if they say yes so that the long losr cousin doesnt swoop in and buy it out from underneath you while you are trying to get your shit together. If you have the equity get a home equity line of credit. Heloc They are usually low cost. Then once you have the plroperty you can figure out if refiing your home makes sense.
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Post by nhmountains on Dec 3, 2020 18:41:55 GMT -6
Get to your bank now. Be ready if they say yes so that the long losr cousin doesnt swoop in and buy it out from underneath you while you are trying to get your shit together. If you have the equity get a home equity line of credit. Heloc They are usually low cost. Then once you have the plroperty you can figure out if refiing your home makes sense. Definitely, money is cheap right now. I recently lost out on a property because the seller wanted a quick cash deal. I’ll be ready when the time is right. |
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Post by snowracerh on Dec 3, 2020 19:12:48 GMT -6
Remember money is cheap right now as long as we are in an inflation mode. If we end up in a deflation mode (not common BUT VERY POSSIBLE IN THE FUTURE) you won't want extra debt.
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Post by nhmountains on Dec 5, 2020 5:58:05 GMT -6
Remember money is cheap right now as long as we are in an inflation mode. If we end up in a deflation mode (not common BUT VERY POSSIBLE IN THE FUTURE) you won't want extra debt. It won’t matter. We will have free healthcare, free college, free farm land if you claim you’re black, no police, no borders. Everything will be great. |
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Post by chummer16 on Dec 5, 2020 6:14:25 GMT -6
What is your current mortgage and rate? Rates are still under 3. If you are higher than that I would refi the whole thing if you have the equity. I think you can refi up to 80% of your homes appraised value. Bank doesn’t care what you are buying.
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