What is the name of your state? Missouri
I was quit claim deeded a house in Nebraska from my mother about 5 years ago. I will be closing the sale of the house in mid January for about 70K. I am now wondering what to do with the assets. I have my main residence in Missouri and have a mortgage against that property for about 75K. The payment on my main residence is now about $775, of which $202 is escrow and 60 is PMI. I figure the value of my residence conservatively as about $80K.
Since I signed the mortgage on my home, I have become permanently disabled through Social Security and have income of only $1279 per month. My question is this: Do I apply the proceeds of the house sale in Nebraska to the residence in Missouri – thus reducing the amount of loan and payment? It seems logical but will I need to hold some dollars back to cover the taxes on the sale of the house or will I be exempt from the tax by reinvesting the money back into real estate? I also will be able to claim that I have lived in the sold Nebraska property within the last five years which I believe entitles me to be exempt from the tax.
I also want to avoid as many closing costs as I can for the REFI so is it best to use my current lender who I am satisfied with or get a new lender who has claims of spectacular savings on rates, costs etc.?
I was quit claim deeded a house in Nebraska from my mother about 5 years ago. I will be closing the sale of the house in mid January for about 70K. I am now wondering what to do with the assets. I have my main residence in Missouri and have a mortgage against that property for about 75K. The payment on my main residence is now about $775, of which $202 is escrow and 60 is PMI. I figure the value of my residence conservatively as about $80K.
Since I signed the mortgage on my home, I have become permanently disabled through Social Security and have income of only $1279 per month. My question is this: Do I apply the proceeds of the house sale in Nebraska to the residence in Missouri – thus reducing the amount of loan and payment? It seems logical but will I need to hold some dollars back to cover the taxes on the sale of the house or will I be exempt from the tax by reinvesting the money back into real estate? I also will be able to claim that I have lived in the sold Nebraska property within the last five years which I believe entitles me to be exempt from the tax.
I also want to avoid as many closing costs as I can for the REFI so is it best to use my current lender who I am satisfied with or get a new lender who has claims of spectacular savings on rates, costs etc.?