Mortgage vs. Home Equity Loan situation?

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my father and his two brothers were gifted the house of my grandfather when he died. I told my father I would like to take home with them as he moved from the house of the confidence of my grandfather on my behalf. In return, I need to pay for the house. But since I already own homes, I can still get a mortgage to pay it or can I simply a mortgage? I ask because the mortgage interest rates seem significantly lower than the credit. Are there other options?

2 Comments
  1. Reply
    dave c
    May 3, 2011 at 5:23 am

    If you planned to rent the home you could get a mortgage based on the rent it will generate. I would ask you local banker about there loan programs for income property. Also mortgages are cheaper interest rates then home equity loans.
    The bank will want to know how you planned top pay them back! You are most likely able to get a equity loan or a mortgage in this case. The mortgage would be a cheaper route.
    The key is your income and credit.

  2. Reply
    Susan B
    May 3, 2011 at 6:05 am

    You should get a mortgage. It will work like a refinance of a land contract.

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