So here’s my question. I cannot sell the home in PA for what I owe on the mortgage and equity. So I’d like to use my new home in WV, take a 125% mortgage on it; will use the money to pay off the home equity loan on my PA home, which means I will then be able to sell it for what I owe on the first mortgage. I would also use the remainder of my funds from the 125% mortage to pay off all of our credit cards and probably have some money left.

This would save me money in a number of ways. The second mortgage payment is basically the same as my home equity loan in PA, so that would be a wash, but by removing the equity loan on the home in PA I can realistically sell the house which would save me 900/month when it sells and probably save another 900/month on credit card bills. So in the short term I’d save 900/month on credit card payments, once the house sells, I’d save 1800 a month.

If necessary I would let you cut checks directly to my home equity loan institution and credit cards so you can be confident that we use the funds as I outlined above. This would make a huge difference in our situation.

I have read about 125% mortgages and I am going to be in WV and in this house for at least the next 15 years, plus property values are stable and increasing in this area,, Morgantown WV (I work as a professor at the Univ of West Virginia) so am comfortable in the process. – Mark