Mortgage Land Loans
I am planning on building in the next 2 yrs. Is it better to buy land now, or pay down my current mortgage.?
I currently own a duplex that we live in half and rent the other half out. I have a little extra cash. I am torn to either purchase some land now, using my cash as a down payment, or use my cash to pay down my current mortgage. If I was to purchase land now, I would have to finance it with either a land loan, or take the equity out of my duplex. I don’t know what would be the smartest move.
First, the best thing to do is pay off home/land/housing debts that way you don’t have anything sucking down money (or at least get the payment down to where it isn’t taking all your spare money) that way if anything goes wrong you can afford to fix it.
Second, keep renting out the land that way you have a steady flow of extra cash
Third, you don’t have to worry about housing rates going up too badly because land is getting cheaper and cheaper (or at least the houses*)
I would not advice taking a land loan because after a few years I do see the housing market picking up, and your loan may increase.
I would go with paying off at least most of the duplex off, than invest in building another house on more land. I would love to have that opportunity.
Land loan refinance and loan lenders
