Buying and selling a house at the same time

meowser · Joined: 24 May 2007 Posts: 2

Initially we planned to rent for another year but a house came on the market that was too good to pass up (had a lot of what we were looking for in a home and at an unbelieveably low cost). We moved from Colorado to Wisconsin in 2005 and have been renting out our CO property. We have also been renting ourselves while living in Wisconsin. Well we decided to sell the CO house so we'd have a nice down payment on our house here. Of course the market is slow in CO (not too surprising) and we more than likely will close on our new house here before selling our house in CO. Our plan was to put a 20% down payment from the CO sale. Since that house probably won't sell in time, I've been looking at HELOCs and bridge loans. Well I also have a credit card with a high limit (over 60k) and no balance. It is offering 1% through March 2008. This includes tranfers to bank accounts. I am thinking of using this as my "bridge loan" until our CO property sells. Looking at bridge loans and HELOCs, it looks like the best rate I can get is about 8%. Does this seem like the way to go? We have the money to pay both mortgages and a HELOC if need be. The only other debt we have is about 9K of student loans. Credit is good, above 760 for me and my wife.