Blanket Mortgages: A Way to Buy A Home Without Selling Your Current One
If you’ve ever thought about buying an investment property, vacation home, or your dream home, but you’re not ready or able to sell your current home, a blanket mortgage is a great option. A blanket mortgage allows you to put one mortgage on two properties, so you don’t lose out on your dream home or a great investment property.
Tim Hart of VanDyk Mortgage Corporation has put together an excellent, short video summarizing how a blanket mortgage would work. Tim is one of our team’s local preferred lenders and an excellent source of information about mortgages. We’ve provided the link for Tim’s video below, but here are a few highlights for you:
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For a blanket mortgage, the lender will consider the value of both properties when calculating the loan-to-value ratio and will provide one mortgage that covers both properties.
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As the homeowner, you will be responsible for paying the taxes and insurance on both properties separately.
- If you decide to sell one of the homes in the future, you can pay down the blanket mortgage and the whole loan “recasts” or is recalculated based on the new lower balance.
So, if you’re thinking about selling your current home and purchasing another one, or if you’re thinking about buying an investment or vacation property, this is a great mortgage option for you.
Check out Tim’s video at the link below and if you have any questions, we’d be happy to put you in contact with him!
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