I’m 60 and completely illiterate about my mortgage – we’re trying to move but I’m in a difficult situation making offers

FACEBOOK has become an unlikely source of financial advice for many people who don’t have a professional financial planner.

An anonymous user recently asked the Facebook group “Mortgage Questions” for tips from the community on moving house.

The public group has 67,000 members and aims to help people understand home buying decisions.

Dozens of people commented on the post, offering ways forward.

THE SITUATION

“Although I am 60 years old, I am completely illiterate about anything related to mortgages,” they said in one post. “So I’m trying to ask questions in a safe space.”

The user and his spouse bought a small house 19 years ago, they said.

They got a 30-year mortgage, which means their house is still not paid off.

“We don’t have a lot of savings because we started raising our three grandchildren 10 years ago and that’s what it is,” they said.

The couple now wants to move.

“However, we would love to buy a house located outside of the city or buy property and build,” they said. “The thing is, we would need to sell our current home first to be able to do this.”

“I feel like I’m in a tough spot with this,” they said.

THE ADVICE

Commentators offered many solutions.

One of them said to try refinancing to get enough money for a down payment.

This would allow them to keep both properties.

“Depending on how you feel, you could rent the current location and use some of that rental income to help qualify for the next location,” they said.

Others suggested a common solution for those looking to move – contingency.

“You can make your purchase contingent on selling your current home,” said another. “That’s probably the cheapest way to do it or you can get a bridge loan.”

Bridge loans have a shorter term and must be repaid within one to three years.

Everyone’s financial situation is different and it may be helpful to seek professional advice before making any major home buying decisions.

Lien and Mortgage Increases Explained

What is a deposit? Why did my mortgage payment go up?

Escrow accounts are created to help homeowners cover insurance, property taxes, or other home-related expenses.

If you have a deposit, part of your monthly mortgage payment goes into the account.

The escrow management company then uses the money in the escrow account to pay taxes and insurance when those payments are due.

Essentially, escrow bundles these other charges with your monthly principal payments, making them easier to manage. The goal is to make homeowners less likely to default on payments.

If the government’s annual assessment of your home determines that property taxes will increase, escrow payments may also increase, meaning even those with fixed mortgage payments could end up shelling out more money every month.

MORE MORTGAGE ISSUES

Another Facebook user recently shared how she believed taxes were to blame for the rising cost of her mortgage.

Payments can vary even for those with fixed mortgages.

A real estate agent and influencer recently explained how the deposit is often to blame.

The system is intended to help people pay their taxes and insurance, but it can also lead to surprises.

One owner said she felt misled by a price change.

Another called his sticker shock “ridiculous”