Would you recommend taking a line of credit out in order to buy a new house before selling your old one?

No. If you take out a 2nd and for some reason you're not able to sell your house or it takes a long time to sell, you could wind up paying two mortgages. If you can afford it, then go for it.





Well, you don't start paying on a line of credit until you use it. So, if you don't use it, then you should be fine.Would you recommend taking a line of credit out in order to buy a new house before selling your old one?
Try to avoid that.Would you recommend taking a line of credit out in order to buy a new house before selling your old one?
Nope, due a contengent on sale purchase.
No, better sell and then go for it
Sure. That will save Income Tax also for you.
Hi,





What you want to look for is something called a ';bridge loan';. It's basically a home equity loan on your old house with defferred payments of up to 6 months. That gives you six months to sell your home and then pay the loan back with the sale of the home.





Ask your local lenders if they have a bridge loan and the details.





Regards
If you can afford 2 mortgages, sure. Remember that the interest rate will be around 8%, almost all HELOCs are based on prime rate(+ or-), which is at 8% currently.
Not unless you can afford both mortgage payments, indefinately.





Otherwise, the old house can end up getting forclosed upon. That would be a Bad Thing.