Moving to a nicer house, get another mortgage or save up to buy in cash?

[Jumpem]

Would you move into the new house sooner and get a mortgage for the difference? Or stay put, pay off your current house, save, and then move into the new house debt free?

 

[Gothgar]

mortgage

 

[PhoKingGuy]

Would you move into the new house sooner and get a mortgage for the difference? Or stay put, pay off your current house, save, and then move into the new house debt free?

I dont think most normal people can pay cash on a house in any desirable place in CA.

 

[Jumpem]

I dont think most normal people can pay cash on a house in any desirable place in CA.

Home prices aren't too bad in central NY. I owe $118k on my current house. The neighborhood we like has nice houses going for $170k to $210k. There are some in the $300k's, but we don't want to spend that much.

 

[vi edit]

Mortgages are sub 4% for 15 years and 4.5% for 30. Mortgage the difference. Take that cash and pay off any other shorter term/higher interest debt that can reduce your monthly costs.

 

[StageLeft]

I bought my first house at 22 with cash, paid $650k down. That's just how I roll. I highly recommend you do the same.

 

[PhoKingGuy]

Home prices aren't too bad in central NY. I owe $118k on my current house. The neighborhood we like has nice houses going for $170k to $210k. There are some in the $300k's, but we don't want to spend that much.

Jesus 1k sqft condos in Irvine/Newport Beach are more than that.

 

[dullard]

I'm going with cash, if possible, for myself. But with 5/1 ARM mortgage rates at 3.5 percent;, you'd be an idiot not to consider taking one. Note: considering one doesn't mean getting one. But, it might be nice to lock in a 3.5 percent; rate and try to invest for something better. And that is just the average rate, with good credit you may get lower.

Edit: how long has the percent sign been broken on ATOT?

 

[StageLeft]

I'm going with cash, if possible, for myself. But with 5/1 ARM mortgage rates at 3.5 percent;, you'd be an idiot not to consider taking one. Note: considering one doesn't mean getting one. But, it might be nice to lock in a 3.5 percent; rate and try to invest for something better. And that is just the average rate, with good credit you may get lower.

Edit: how long has the percent sign been broken on ATOT?

A pitifully long time.

 

[mizzou]

wow,if you can feasibly save up cash for a house go that route.

 

[dullard]

A pitifully long time.

I've been absent for a couple of weeks. Looks like I need to post more.

 

[Imp]

Depends on how much is left and the growth potential of both houses. I'm looking to buy right now and would have to pay $10k-ish in mortgage insurance since I'm not willing to put up 20 percent own. However, in my area, there's a good chance that I'll make that money back just by buying earlier.

By the time you save enough for the other house, it may be more expensive, then you'll be playing catch up. Mortgage rates are low right now, so may as well jump on it.

 

[Jumpem]

Depends on how much is left and the growth potential of both houses. I'm looking to buy right now and would have to pay $10k-ish in mortgage insurance since I'm not willing to put up 20 percent own. However, in my area, there's a good chance that I'll make that money back just by buying earlier.

By the time you save enough for the other house, it may be more expensive, then you'll be playing catch up. Mortgage rates are low right now, so may as well jump on it.

Well I'm stuck for the next five years or so. I have two kids, and daycare is less than half the price here 45 miles from work, than the closer neighborhoods.

 

[BarkingGhostar]

Would you move into the new house sooner and get a mortgage for the difference? Or stay put, pay off your current house, save, and then move into the new house debt free?

I'm pretty sure I can muster any advice I need from those in my personal life and not from complete strangers on this forum.