Bought in 2019 for 205k. I'm at a 2.875% interest rate. Current loan is around 165k
Now I need a bigger house. Getting married and having kids.
Option 1- continue paying off debt, save up for a rental while I sell this house, use equity to square all debt and put down payment on next house.
Option 2- lender offered some program where I can buy the next house with their money and I can sell my house afterwards to pay them back. Some fees and stuff involved. Sounds too good to be true.
I know option 3 is rent my old place, but I don't want to play landlord, and I need the money for the down payment on the next house. It does indeed suck walking away from 2.875.
Any thoughts or more options would be appreciated.
Posted by testreker
4 Comments
You said getting married and having kids, if she isn’t currently pregnant, you have time unless you’re trying to speedrun a family. It may be worth it to postpone a year or two to give yourself better footing.
Hearing the words save up for rental is slightly concerning because that means you don’t have much liquid and you should have more of a financial cushion before making this kind of jump. “Having kids” doesn’t mean you need a new house right now. Moving is expensive.
We’re doing the same thing as you. Walking away from our 2.99 and getting a bigger place. We’re not due to close until August and just listed our house this week. We figured we’d rather pay for a month to month place than stress about the closings lining up. We’re a bit unique because our loan isn’t contingent on the sale of my current place. My inlaws offered to cover our next down payment if our house wasnt sold in time.
That said, I’d go option one. The market is in a weird spot right now and a lot of builders are forecasting for a bad year. They’ll probably continue to ramp incentives, so don’t let the rush timing sales tactic get to you.
It took us 5 years from marriage to have kids.
You have time, homie.