Small Liquidity Crisis
Talk about bad timing. I just realized that BOTH my 0% balance transfers expire within days of when I am trying to close on my mortgage. While I have a fair amount of cash, enough to pay off both 0% balance transfers and then some, I don't have enough to pay off both 0% balance transfers, pay a 20% down payment, and pay for the closing costs.
Why put 20% down?
It all works out the same in the end I guess. I could put 5-10% down and get a new equity line for the remaining 10-15%, but that would be the same (or worse) as drawing money against my existing equity line. This way I can avoid any costs associated with opening a new HELOC for the home. If there is no financial benefit I just assume keep things simple; one less account to worry about.
If I work all the numbers out, I am about $5,500 short. My plan is to pay off both balance transfers, and put a full 20% down payment so I only need a 80% mortgage. I will then apply for a new 0% balance transfer offer as soon as I close to hopefully cover the ~$5,500 or so that I will need. However, I will need about $5,500 for about 30 days to get through closing and time to apply for the balance transfer.
I have a couple different options I am floating around:
-Try and borrow the $5,500 from my parents
-Pull $5,500 from the equity line on my 1st house
-Borrow $5,500 from my girlfriend's savings account (I can't believe she offered)
-I could always sell some IBM stock to cover the gap
I am leaning towards pulling the $5,500 from my equity line on the 1st house. Then if I do get another 0% balance transfer I can treat it as though I am paying off the equity line with a cheaper financing option. Even if I didn't get another 0% balance transfer I would be still planning to pay off the equity line within the next 12 months.
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