We're looking at a home with a close date that might be six months out. The current owners are awaiting the build of their new home. What mortgage options (e.g., rate lock, typical points paid for this lengthy of a lock) are likely most suitable given this situation? Thanks.
Thanks for visiting FatWallet.com. Join for free to remove this ad.
posted: Apr. 15, 2013 @ 11:14a
Some people close earlier in a case like this, and then rent the house back to them for a set period of time.
posted: Apr. 15, 2013 @ 2:33p
I just did a rent-back agreement both as seller and buyer- basically you close the latest you can close (typically 60 days) and then take possession of the property 6 months after close. For each day that the seller stays past close, we arranged to pay (or be paid) principal + interest + taxes + assessments (if you are in a condo) to keep everyone whole. The good news is that rates are really low and likely only going up from here...
A few caveats-
1. You'll want the 6 months of payments in escrow so that they can't leave without paying you; add on top of this some cushion in case they are delayed 2. You'll want an extra security deposit in escrow in case they damage something, etc 3. You will still need to purchase homeowner's insurance from the day you close, so that could be factored into the payments if you are just renting now
Senior Member - 7K
posted: Apr. 15, 2013 @ 4:20p
I'd just keep an eye on the tnx . I think anything beyond 90 days would be costly.
Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.
Members of our community may attach files to a post in accordance with the User Agreement. FatWallet is not responsible for the content, accuracy, completeness or validity of any information contained in any attached file. Files have *not* been scanned for viruses. Be especially wary of Excel files which may contain malicious content.
Earn Cash Back while you shop - just 3 simple steps.
1. Sign Up so we know who to pay! (It's FREE.)
2. Shop through FatWallet for deals from your favorite stores. Your online purchases earn Cash Back that builds in your FatWallet account.
3. Get Paid by requesting a payment via check or PayPal.
FatWallet coupons help you save more when shopping online. Use our Coupons Search to browse coupons and offers from thousands of stores, gathered into one convenient location.
As part of our FatWallet Community, you can share deals with almost a million shoppers in our forums. Forum content is generated by consumers for consumers. Share deals, money-saving tips, and more. It's FREE, fun, and addicting.
Our customer experience team is here around the clock - real people ready to assist.