We bought our first house in April and I love it. It isn't the biggest or fanciest house in town... but it suits our needs perfectly! It is a 4 bedroom home with 2 stories and a full basement. Big backyard, quiet, dead end street and a great school district.
Last week FH went bike riding and found ANOTHER house. He loves it. I admit it is VERY nice. Huge. It has everything we have - plus a huge garage/workshop and it is closer to the water. It is still in Sayville - so the school district is the same.
Here is the problem... it is a LOT more expensive than our current house. Right now we have almost 250G in equity in this house. If we buy that house we will have NO equity! AND our mortgage will be CONSIDERABLY larger.
I don't really want to move - but FH never NEVER wants anything. I don't want to tell him NO...
What would you do?
Meaghan729
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Re: ANOTHER House????
definitely stay in your current house -
the market is changing and chances are since you just bought it in April, you may sell it for less than you paid.
and you have to pay all those closing costs on the new house, and there are costs associated with the sale.
Shmar
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Re: ANOTHER House????
I would stay in your current house. With the changing market, you may be able to afford a bigger house in the near future. Unless you can REALLY afford the higher morgage, I wouldn't move.
rojerono
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Re: ANOTHER House????
Posted by Meaghan729
definitely stay in your current house -
the market is changing and chances are since you just bought it in April, you may sell it for less than you paid.
and you have to pay all those closing costs on the new house, and there are costs associated with the sale.
We won't get less than we did in April... we got the house for a song - over 100,000 less than market value - for a few lucky reasons.
My two concerns are:
1. our equity will be considerably less... as an example (fake numbers): Current house: Home Value was $350.000. Paid $200,000 in April - put down $100,000 and left us with a $100.000 mortgage. This gives us about $250.000 in equity. House 2 is: $550.000 and we won't get it for much less. If we sold our house at full $350,000 value and applied the full amount to the new purchase - we would have a mortgage of $250,000 (over 100.,000 more than what we currently pay)and NO equity! We could do it... but it would be TIGHT. It would literally mean NOTHING extra.
2. On the OTHER hand.... FH loves the house. It is his DREAM house. He can't stop talking about it. I don't want to shoot him down when he has been running these numbers trying to make it work...
*sigh*
hayleyandsteve
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Re: ANOTHER House????
I tend to be very impulsive..... but I always feel that you only live once! This life might be all you get... so why not live your dreams? I think you should ask FH which would make him happier.... having the house of his dreams? or having a lower mortgage? I think that we all have certain ideas about how we want our life to be, and a house can be a BIG part of that (considering you already have each other and beautiful children!) so if you can afford it, then why not have the house of your dreams too?
JMO!
ETA: but you also have a wedding coming up! so make sure to consider that in terms of your available finances!
Meaghan729
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Re: ANOTHER House????
is the house bigger? more taxes? you have to think of those things too - and more closing costs and selling costs.
TheFutureMrsM
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Re: ANOTHER House????
i would stay, the market is changing, and we just bought, and i see prices of houses we looked at and made offers on...drop 20k in a month and im not even kidding, if you have 250k in equity, i would consider improving a room, or redoing something in your home that you use alot. without breaking the bank. i dont think moving now would be the best thing, plus you sound like you really like the qualities of your house, so improving something could be a good choice
TnOiOnL
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Re: ANOTHER House????
I th ink you should try to hold off as long as possible... Market is slowing down now, and you'll probably be able to get the same house for a lot less in the near future...
And having NO equity in your home is kinda scarey.. especially since you have so much in it now.. God forbid something happens, atleast you have the equity to fall back on
Meaghan729
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Re: ANOTHER House????
I forgot to mention the other day that if you make $$ on the sale of your house and you owned it less than 2 years you have to pay capital gains taxes.
