can I refinance current house, then buy new house?
Carrie G asked:
I still owe on the mortgage for my current house and am planning to buy a new house (and try to keep my current house).
Instead of borrowing from my 401k for the down payment, my mortgage guy suggested I refinance my current house (as a primary residence to get a better rate) then apply for the mortgage for my new house.
I told someone about this and they said doing that would be fraud because I’m refinancing my current house as a primary residence and I need to live here for a year.
Is this true? How much trouble could I get in?
Thanks.
I’m trying to rent my current house through a realtor – so there is an MLS for it (don’t know if that makes a difference)
ROD
I still owe on the mortgage for my current house and am planning to buy a new house (and try to keep my current house).
Instead of borrowing from my 401k for the down payment, my mortgage guy suggested I refinance my current house (as a primary residence to get a better rate) then apply for the mortgage for my new house.
I told someone about this and they said doing that would be fraud because I’m refinancing my current house as a primary residence and I need to live here for a year.
Is this true? How much trouble could I get in?
Thanks.
I’m trying to rent my current house through a realtor – so there is an MLS for it (don’t know if that makes a difference)
ROD
