I just have a question and I need anybody to answer that has knowledge of it. So far I have found no one. I have heard the term " mortgage leapfrog". But cannot find info about it anywhere. My understanding is you buy house #1 and mortgage it . Buy house #2 and rent out house #1 then buy house #3 with cash and own it. Is there another term or info on this anywhere?
I am hearing first time now. But googling gives this choice.
@LbJW may be right person as he is expert in mortgage finances.
I think leapfrogging a technology means skipping a ladder or two of technological innovation and go straight from one generation of thech to another generation of tech skipping those in-between.
I think your question is wrong. No matter how you order and sequence your purchase and mortgage, you will only be able to borrow up-to the point till the debt to income ratio and ratio of loan to the value of the asset will be below a level where a lender feels comfortable with your ability to earn and intention to pay.
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It’s often called laddering. Must have super strong income to make the first leap. (Small primary home converted to rental, then buying property number 2). After that it’s pretty easy to continue higher and higher.
Thanks for reading
Thanks. In any case, the income and the assets of the borrower eventually limit how much can be lent…