We built our small house in 2020. We have about $150k in equity. The monthly mortgage is $1,200 at a 3.375% rate.
Something happened in our family and neighborhood, and my wife insists we leave. She wants a house around $400k. We make about $120k together yearly. Her plan is to use our house equity to pay off the car and credit cards, leaving about $110k for the new down payment.
What do you think? We live in NW Florida, and home prices are high. If we move, our new mortgage could double. But we wouldn’t have car or credit card bills. Sorry if this is unclear. Ask if you need more details.
@Hollis
Moving can cost you extra money right away. Your house is pretty new, so it likely needs fewer repairs. A different home might need pricey fixes.
A $400k house on $120k income can work, but you won’t beat your $1,200 payment or that 3.375% rate. I’d try to stay at least a year or two and grow more equity.
Charlie said:
A $400k house on $120k income can work, but you won’t beat your $1,200 payment or that 3.375% rate. I’d try to stay at least a year or two and grow more equity.
I feel the same. We won’t see those low rates for a long time, and our current payment is great in our area.
Hollis said: @Shai
Really, the only way to move now is having a lot of equity or a higher income to offset higher rates. Care to share what’s causing all of this?
We want to move away from certain family members. It’s just gotten annoying, and my wife doesn’t want our kids around theirs anymore.
@Shai
Ah, so it’s family drama, not an unsafe situation. If you’re not in real danger, maybe hold out until your finances are stronger. If you move, you can’t be sure the new neighbors will be better.
Hollis said: @Shai
Ah, so it’s family drama, not an unsafe situation. If you’re not in real danger, maybe hold out until your finances are stronger. If you move, you can’t be sure the new neighbors will be better.
We are talking about Florida… might be 10 meth labs there.
Vale said: @Shai
What if you rent out your current house and rent somewhere else yourselves? Then you keep your sweet mortgage while living away from them.
Just be careful with renters who can wreck your house. It might not be worth it if you rely on rent to pay the mortgage.
@Shai
Set stronger boundaries with your family, so your kids aren’t forced to hang out with their kids. That might fix the issue without an expensive move.