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Mrs&MrsK
i need sleep ;-)
Member since 2/14 2008 total posts
Name:
L
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advice?
we are looking to move, preferably within the next 5 years and DEFINITELY within the next 10 years.
looking to "upgrade" for a little more space (DR, den, maybe a bedroom) and a better school district.
We are currently scoping the market for fun and to get an idea of what else we'd like to have in our next home. We know we will have cosmetic fixes regardless, but are looking at layout, natural lighting, location, etc.
The problem and why we are waiting is our current house value (approx 60K less than we owe, another 50k + at least $17-20K major improvements less than we bought for).
Our plan is to pay down our mortgage by paying as much extra as possible and WAIT for the market. We will obviously need a decent down payment OVER our selling price.
Any other advice?
Waiting is the WORST!
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Posted 9/19/14 9:39 AM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: advice?
Posted by Mrs&MrsK
Our plan is to pay down our mortgage by paying as much extra as possible and WAIT for the market. We will obviously need a decent down payment OVER our selling price.
Any other advice?
Waiting is the WORST!
My advice would be the opposite. Pay as little into your mortgage as possible and save the money so you have a larger down payment.
Sellers don't care how much equity they have in your house. They care how much down payment you have.
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| Posted 9/19/14 9:58 AM |
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Mrs&MrsK
i need sleep ;-)
Member since 2/14 2008 total posts
Name:
L
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Re: advice?
Posted by ave1024
Posted by Mrs&MrsK
Our plan is to pay down our mortgage by paying as much extra as possible and WAIT for the market. We will obviously need a decent down payment OVER our selling price.
Any other advice?
Waiting is the WORST!
My advice would be the opposite. Pay as little into your mortgage as possible and save the money so you have a larger down payment.
Sellers don't care how much equity they have in your house. They care how much down payment you have.
we have a smaller loan on the house that is kind of crazy %, much higher than any interest we would get in a savings account.
i feel like the market/ sale price will be the sale price regardless, so anything we pay the banks now will be in our pocket later.
i am going to see a financial adviser as soon as i get a chance, to review our additional options/ plans.
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| Posted 9/19/14 10:03 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: advice?
Posted by ave1024
Posted by Mrs&MrsK
Our plan is to pay down our mortgage by paying as much extra as possible and WAIT for the market. We will obviously need a decent down payment OVER our selling price.
Any other advice?
Waiting is the WORST!
My advice would be the opposite. Pay as little into your mortgage as possible and save the money so you have a larger down payment.
Sellers don't care how much equity they have in your house. They care how much down payment you have.
This! Don't put any extra to your mortgage. Better to have the cash. You don't know where the market will be in 5-10 years--but you'll have the cash. (Inflation would be a risk but that would effect your house value too)
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| Posted 9/19/14 10:25 AM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: advice?
Posted by Mrs&MrsK
so anything we pay the banks now will be in our pocket later.
Money is always better off in your pocket now, not later.
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| Posted 9/19/14 10:34 AM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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advice?
I don't whole-heartedly agree with this advice. If you are able to BOTH save AND put down extra to your mortgage, that is the way to go, personally. DH and I are looking at paying off our mortgage in less than 20 years (on a 30 year mortgage) because we pay an extra $250 per month to our principle. We also figured out we are saving some ridiculous amount of money in interest payments because of this. We are also able to save a lot of money each month on top of that for our savings, retirement, etc. If you can swing that, then that is the route I would recommend taking.
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| Posted 9/19/14 10:52 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: advice?
Posted by jessnbrian
I don't whole-heartedly agree with this advice. If you are able to BOTH save AND put down extra to your mortgage, that is the way to go, personally. DH and I are looking at paying off our mortgage in less than 20 years (on a 30 year mortgage) because we pay an extra $250 per month to our principle. We also figured out we are saving some ridiculous amount of money in interest payments because of this. We are also able to save a lot of money each month on top of that for our savings, retirement, etc. If you can swing that, then that is the route I would recommend taking.
if she was looking to stay in the house - I would pay down the mortgage- but she is looking to sell it
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| Posted 9/19/14 11:01 AM |
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Mrs&MrsK
i need sleep ;-)
Member since 2/14 2008 total posts
Name:
L
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Re: advice?
Posted by jessnbrian
I don't whole-heartedly agree with this advice. If you are able to BOTH save AND put down extra to your mortgage, that is the way to go, personally. DH and I are looking at paying off our mortgage in less than 20 years (on a 30 year mortgage) because we pay an extra $250 per month to our principle. We also figured out we are saving some ridiculous amount of money in interest payments because of this. We are also able to save a lot of money each month on top of that for our savings, retirement, etc. If you can swing that, then that is the route I would recommend taking.
i agree with you. i can pay this part of the loan off in 8 years vs 22 more. we are also allocating for other savings, including our 401ks, emergency funds, , eventually 529 for the baby. The only costs I am not sure how much to allocate for are the baby's needs-diapers, etc (hopefully i planned enough!). All pending if DW stays home vs daycare which is up in the air since she got a promotion last week.
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| Posted 9/19/14 11:03 AM |
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Mrs&MrsK
i need sleep ;-)
Member since 2/14 2008 total posts
Name:
L
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Re: advice?
Posted by Beth
Posted by jessnbrian
I don't whole-heartedly agree with this advice. If you are able to BOTH save AND put down extra to your mortgage, that is the way to go, personally. DH and I are looking at paying off our mortgage in less than 20 years (on a 30 year mortgage) because we pay an extra $250 per month to our principle. We also figured out we are saving some ridiculous amount of money in interest payments because of this. We are also able to save a lot of money each month on top of that for our savings, retirement, etc. If you can swing that, then that is the route I would recommend taking.
if she was looking to stay in the house - I would pay down the mortgage- but she is looking to sell it
since you are pretty experienced- can you explain why? i feel like paying the mortgage a few hundred extra a month means paying less overall and having more to work with once we sell. we are either going to owe the bank more later or have the $ at the sale. I am not concerned about timing of sale vs buying, we could live at one of our parent's or rent for a few months if necessary.
i dont think our house will turn around enough to sell before 5 years, and by then it could make a huge difference by then.
if it makes a difference: this is not our 1st mortgage, it was an 80/20 originally. CRAZY interest, but less than taking out a personal loan/ changing it. Can not be refinanced because of the home value.
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| Posted 9/19/14 11:09 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: advice?
It would depend on how bad that interest rate was and how quickly it would be paid off. If you could pay it off in 3 years and then apply that payment you were making on it to savings for two years I would maybe consider, but it would depend on how high the rate is and when could you be done with it
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| Posted 9/19/14 11:25 AM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19458 total posts
Name:
L
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Re: advice?
I think it depends. I sort of look at it like paying down the mortgage will give your money a guaranteed rate of return (I.e., what ever the percentage your mortgage is you are getting that as your return rate. If you think you can do better than that number then perhaps it would be wiser to invest extra money towards that instead.) I look at it as you will get the money back when you intend to sell.
I personally feel that since the fed stopped its QE program that by next year interest rates will rise.
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| Posted 9/19/14 12:11 PM |
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