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Seller seeks best way to finance replacement home

Home equity loan could be a lifesaver

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DEAR BOB: I will be retiring at the end of the year when I will move to another state. In January, I will put my condo on the market for sale. It should bring about $325,000. With the proceeds from the sale, I want to pay cash to buy a patio-garden home for around $150,000 at my new location. If I find a property to buy before my condo sells, what type of loan should I seek? I currently have no mortgage and have an excellent credit rating. I was told by a loan officer to apply for a mortgage on my condo, but the settlement costs seem outrageous. What should I do? – Virginia B. DEAR VIRGINIA: When you find a home you want to buy at your new location, with your great credit score you should be able to finance its purchase with a home equity loan, called a HELOC. However, most bank HELOC lenders will only loan up to 75 percent of market value. If you can fund the remaining 25 percent from your cash reserves, you're in a great situation. Purchase Bob Bruss reports online. Check with ...