relocation/mortgage options

[Alfonsia]

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[exodusNH]

So we are looking at an interstate relocation, our current home has no mortgage (probably should clear 800K, in HTX, but near midtown, so not the hot exurbs, family sized but not little kid friendly) and we are moving to a lower cost area and probably would buy at less than 800k. As we have always moved with company help, we are navigating this as a mystery LOL. Like as not we could find a house to buy before selling or at least closing our current home, we can deposit 20% from current cash and take out a mortgage on the new home with the preference of clearing that debt ASAP, what are the best options to minimize upfront costs (loan origination etc) and still have no penalty for early repayment? Credit score is tip top but rates still look in the high 4s or 5. Is HELOC an option on our yet to be listed home? Bridging loans look like they have high fees and might be more risk than I care for. It looks like the FHA limit for our target area is 420K and probably short of what we might want to borrow, but FHAs have no early payment penalty.
So looking at wanting to have my cake and eat it? What is the cheapest route? Thanks for any opinions. We are yet to firm up the details but will get the REA in when that happens. Also what REA tactics are currently viable? Negotiating % fee? Using alternate listing options? Again, I am not in a red hot market, but probably in a mildly pink one.

If your portfolio is big enough, a margin loan might be an option.

A HELOC would work as well. Depending on the provider, you might get dinged with an early termination fee in exchange for no up-front fees. (E.g., my BoA line has a $300 fee if I close it before the third anniversary, but didn't have any closing costs or yearly fees. They incur real costs underwriting the loan and whatever fees the county charges to record the lien, as well as the effort/costs to release the lien when the loan is closed.)

HELOCs often have teaser rates that reset to prime+/- after the first year or such.

[sport]

Our old home was paid off. We wanted to buy a new one before the old one sold. I asked the loan officer at the bank about a bridge loan. He suggested that we take out a mortgage on either the old house or the new one. We took the mortgage on the new house and paid a slightly higher rate to get a "no fee" loan. Since we expected to pay it off when the old house sold, the rate was not too important. We made sure that there would be no prepayment penalty. When the old house sold, we paid off the loan. In our case we had to add some additional cash because the new house was more expensive than the old one. Ours was a local move.

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[sport]

@sport Do you have any idea what the no fee loan product was or who the lender was? That is exactly what we need.

The loan product was a standard 30-year loan. IIRC, there was a ¼% higher interest rate to avoid fees. The lender was Third Federal Savings & Loan. They are a local bank for me. I don't know if they will lend to other areas.

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[Pops1860]

This thread has run its course and is now locked. OP has deleted all their posts. Moderator Pops1860