My mother owns 2 properties, 1 of which is almost paid (under 50k). The other house however, is 500k but she has bad interest at 7% and is costing huge chunk monthly just to pay. Both will yield profit from selling, except the one almost paid has a higher yield, while the 500k one is valued a lot higher in the market for homes.
There is also an emotional value to the 500k since its my childhood home, but it's causing a burden to my mother just to pay. It's almost hard to just give up on it now. There were lots of renovations to it.
A buyer wishes to buy this home from her to relieve her burden since she realizes its worth a lot more in the market and can get a better interest rate for herself.
But I'm suggesting to my mom to sell the almost paid off home in order to pay 90% of the 500k mortgage home.
Is this a good suggestion? Any other options? She has bad credit and cannot refinance or find any other loan. Maybe paying that huge chunk off will improve her credit rather than selling it to someone?
Read more: Should I sell my house to pay for the mortgage of another house?
