Hello,
My spouse and I have been living in our current smaller house for the past 12 years, and its value has appreciated to approximately $480K. As we are now in middle age, we are considering moving to what might be our last home—a nicer, slightly larger house with a backyard. (before we start downsizing)
Here is our personal financial situation:
$$ Available for down payment: ~$350K
Emergency cash (excluding down payment): ~$100K
Combined income: ~$250K (one spouse has a stable job, the other works on contracts)
Annual expenses: $70-90K
No current mortgage
We are looking at purchasing a new house for approximately $750K. We plan to put down $350K and take a loan for $400K, with a monthly mortgage payment of around $2500 at a 6.6% interest rate.
We are considering two options:
Sell our current house and use the proceeds to pay off the new mortgage later.
Rent our current house for $2200 per month to help cover the new mortgage.
Our concerns and risks include:
One spouse has contract-based work, which could mean a few months gap between jobs, although joblessness has never occurred.
The possibility of both of us losing our jobs.
A potential decline in house prices (housing market bubble burst).
We would appreciate any thoughts or advice on this matter.
Thank you,
Don
My spouse and I have been living in our current smaller house for the past 12 years, and its value has appreciated to approximately $480K. As we are now in middle age, we are considering moving to what might be our last home—a nicer, slightly larger house with a backyard. (before we start downsizing)
Here is our personal financial situation:
$$ Available for down payment: ~$350K
Emergency cash (excluding down payment): ~$100K
Combined income: ~$250K (one spouse has a stable job, the other works on contracts)
Annual expenses: $70-90K
No current mortgage
We are looking at purchasing a new house for approximately $750K. We plan to put down $350K and take a loan for $400K, with a monthly mortgage payment of around $2500 at a 6.6% interest rate.
We are considering two options:
Sell our current house and use the proceeds to pay off the new mortgage later.
Rent our current house for $2200 per month to help cover the new mortgage.
Our concerns and risks include:
One spouse has contract-based work, which could mean a few months gap between jobs, although joblessness has never occurred.
The possibility of both of us losing our jobs.
A potential decline in house prices (housing market bubble burst).
We would appreciate any thoughts or advice on this matter.
Thank you,
Don
Statistics: Posted by sksbog — Tue Jul 23, 2024 8:53 pm — Replies 5 — Views 638