Can I roll my current mortgage into a new mortgage?

Question

We plan to purchase another home next year. We will still owe roughly 17,000 on the house we live in now. If we can sell the house before we move that will be great, but if we cant sell right away we really cant afford 2 mortgages. The house we plan to buy is around 65,000. We are planning on putting 10% down, maybe more if we have it by that time. Can we ask our bank (if our house doesnt sell) to add the 17,000 we still owe on this one into the amount for the new home and avoid paying 2 seperate mortgages that way? If we would be able to do this, it would save us tons of money and then once our old house does sell we can pay off a big portion of the loan and refinance, thus lowering our monthly payments and the amount of time to pay off the loan. I am in the dark on this and dont want to go to the bank next year and look like an idiot for asking if this is not possible. Thanks!

Answer 1

no that isn't done. You need to have a renter in place so you can off set the mortgage payments and that will work

Answer 2

You need to sell your current house before purchasing another one. You can make an offer that is contingent upon your old house selling.

You can't get an extra $17,000 and pay off the other house and then sell it afterwards and pay the loan back.

If you can't afford two mortgages maybe you would consider using the first home as investment property and renting it out to a long term tenant thus pay the mortgage.

Keep it simple. Those secondary loand and HELOC (Home equity line of credit) are for repairs to the current house. If you violate the terms of your orioginal mortgage the bank can seize the property.

Either sell it before buying or rent it out for the amount owed on the monthly note. You can always refinance the 17,000$ into another 15 or 30 year fixed loan thus drastically lowering your monthly payment.

You can buy a new home before selling but make it known in the contract that it is contingent upon your other house selling.