Okay here is the deal.
1. Of course first home isn’t paid off yet.
2. Should I still look into renting this property out to someone else starting in 2013 til then, i’m going to start paying a double mortgage, so that it’s paid off sooner than 30 years?
3. or should I just do the double mortgage for 5 years and the house will be paid off and then have someone rent it, so there fore, would more than help me with new mortgage?
The house we live in now, is obviously a starter home, there is so much that I would like to do with it, as in, make it a day care maybe in 7 or 9 years from now or just use it as a renter out home until we die.
This is our dream home because it’s our first family home with our children but we really want to build someday.
So any opinions on this would be appreciated thanks!
You may purchase another home without paying off your existing home mortgage.
I would be careful about doubling up on those mortgage payments, though it is not a bad idea since is appears as if you plan to keep the property for a rental. You might consider getting a mortgage Calculator and figure out the amount you need to add each month to obtain the same results.
Take some of the money you plan to use to pay off your mortgage and place it into an interest bearing account. The savings account and the amount in the savings would be more impressive to a new lender as oppose to a paid down mortgage. Of course you should keep your mortgage current with no missed payments.
For any tax or legal matters you should always consult your attorney or tax consultant.
If you plan to use your current home as a day care center down the road, you might want to check with the city planning staff and see how the property is zoned. Some areas are zoned none commercial use. Some zones are ok for certain types of business. This will only take a telephone call to the planning and zoning commission to find out if you can use this property later on for what you plan.
It is always wise to step up this is called wealth building and a 3 year plan in this economy make better sense as appreciation of homes have sort of stagnated recently.
I hope this has been of some use to you, good luck.
"FIGHT ON"
I’m not sure I understand your question but this may help. First in order to qualify for a 2nd home you are going to have to qualify based on both mortgage payments. Even if you rent it out the lenders will not use rental income unless you can prove by tax returns that you have been a landlord for 2 years. If you do rent keep in mind that maintenance charges will probably be higher because an owner always takes better care of home than a renter.
References :
23 years mortgage business.
You may purchase another home without paying off your existing home mortgage.
I would be careful about doubling up on those mortgage payments, though it is not a bad idea since is appears as if you plan to keep the property for a rental. You might consider getting a mortgage Calculator and figure out the amount you need to add each month to obtain the same results.
Take some of the money you plan to use to pay off your mortgage and place it into an interest bearing account. The savings account and the amount in the savings would be more impressive to a new lender as oppose to a paid down mortgage. Of course you should keep your mortgage current with no missed payments.
For any tax or legal matters you should always consult your attorney or tax consultant.
If you plan to use your current home as a day care center down the road, you might want to check with the city planning staff and see how the property is zoned. Some areas are zoned none commercial use. Some zones are ok for certain types of business. This will only take a telephone call to the planning and zoning commission to find out if you can use this property later on for what you plan.
It is always wise to step up this is called wealth building and a 3 year plan in this economy make better sense as appreciation of homes have sort of stagnated recently.
I hope this has been of some use to you, good luck.
"FIGHT ON"
References :