Cheap Mortgages
Is it a good idea to take a very affordable mortgage for a condominium that is in forclosure?
I am thinking about taking over the mortgage for this really nice condo. rents are like two hundred U.S. dollars cheaper than apt I am renting now. but idk? Im 22 and in nursing school right now. it would be a good idea?
You left out quite a bit relevant information. For example, you do not mention how much of a discount, if any, you get the apartment. You may also do not mention what kind of loan it is. I'll tell you right now if it's an ARM, or adjustable rate mortgage, you should RUN not walk away from that deal! Interest rates have historically pointed to the extreme, when we have a Democrat in the White House. When President Carter was president, we have had interest rates above 20%. When it goes up and it will-you're payment goes up, probably way higher than you can afford to pay for student income. Also, there is the little matter of negative amortization. Every year you make the cut, the amount you do not pay is added to your principles and you are charged interest on it. You must pay it at the end of each year. If you do not have the money and can not borrow that you lose your HOME! Another thing to never do is to assume a mortgage with a balloon payment. If you do not have money to pay the balloon, and can not borrow it, you lose your HOME! Be sure to consult a lawyer before you sign. Whatever you do, do not use the seller's lawyer. He has no fiduciary duty to you and will give advice to support the agenda for the seller, not you. It can be very, very bad for you. Hire a lawyer from a reputable company. It can be expensive but not as expensive as losing your home and your credit at once. I wish you the best.