Home Equity on 1st house ilo mortgage ?'s

[surfgirl]

What is the name of your state? Pennsylvania

We are buying a 2nd house (for our personal use, not as a rental) with a brother. Instead of a mortgage on the 2nd property, we are increasing our home equity line on primary residence for our half since it makes the tax situation *significantly* easier. Getting a great rate on home equity line so it makes sense.

Will this make the offer more attractive to the builder ? (ie. essentially cash instead of mortgage) Why or why doesn't it matter to him?

What closing costs will this eliminate? (A preliminary estimate with a 80/20 mortgage listed the following: title insurance, title endorsements, recording fees, transfer tax under Title sub-heading).

 

[HomeGuru]

What is the name of your state? Pennsylvania

We are buying a 2nd house (for our personal use, not as a rental) with a brother. Instead of a mortgage on the 2nd property, we are increasing our home equity line on primary residence for our half since it makes the tax situation *significantly* easier. Getting a great rate on home equity line so it makes sense.

Will this make the offer more attractive to the builder ? (ie. essentially cash instead of mortgage) Why or why doesn't it matter to him?

What closing costs will this eliminate? (A preliminary estimate with a 80/20 mortgage listed the following: title insurance, title endorsements, recording fees, transfer tax under Title sub-heading).

**A: those fees will be the same regardless of whether you pay cash or get a mortgage. The recording fees wold be less since there would be no mortgage document to record but you would be paying for a similar fee when you get the HELOC.