We are about to upgrade to a larger home soon (next few months depending upon what we find) and I'm looking into mortgage options.
I've read a little about bridge loans and see their purpose, but the additional fees seem high from what I've read. I decided to apply for a home equity line of credit a month ago and I've been approved.
I've got the funds to cover my 20% down payment, but we would be cutting it close on on cash reserves. Especially if our current home doesn't sell. (It should sell quick since we are in a rather hot market and have a smaller home in a desired area).
So, knowing that we just need a $30,000-50,000 security net for peace of mind, what would y'all recommend? I know you'd need more info on rates and such, and I'll get that on Monday.
I've talked with WellsFargo already and their Jumbo loan rates are actually better then their conventional rate. Not true at other banks/lenders I spoke with. Other lenders are recommending that I take out 2 loans to keep it from being a jumbo loan. I'm 'assuming' closing cost for loan #1 and closing cost/1% origination fees for loan#2 (being the bridge loan), will be more then the WF jumbo loan utilizing my HELOC
What are y'alls thoughts? Anyone been down this road recently?
TIA!!