Background: My wife and I moved into our current home 4 years ago. We got the house right before the market in our area started to skyrocket. A nice starter home, built in 2003 it is about 2400sqft with a beautiful landscaped front, side and back yard. We ended up not needing all this space and it mainly collects stuff. Currently our house is probably worth around 230-240K, we bought it at 176K a few years ago. I am basing my estimates off my neighbor who sold his house last year for 225K as a base model and ours is larger, upgraded and has more land. Zillow estimates it to be 235K.
We are thinking about selling this house and buying a much older and smaller house. We were thinking something like 1500sqft and built in the 70-80's. This way it most likely wouldn't be in a subdivision and it would be on its own lot on a backroad or old style neighborhood.
We were hoping to find something around 150-160K, which in looking seems to be accurate for the area. We figured after closing cost(buy/sell) and moving we would have 40-50K remaining(cautious estimate) to put as a down payment on this house. This would get rid of the PMI which we currently pay, and also lower the cost of the mortgage significantly. Allowing us to save more money each month and over the years.
We are not sure if this is a bad decision or a good one. On paper it seems like the right thing to do, but moving into an older home is going to have its problems as well.
Anyone done something like this before? I am calling our real estate agent later today, but I just wanted to get a hang on other peoples experiences.
EDIT: UPDATE 1: I just got off the phone with the mortgage company. We can refinance to get rid of the PMI. This will save us roughly $176 a month. Also a lower interest rate. The total combined savings per year at the quoted estimate was $3500. Which we will put into other investments. All around we think we might just stay here now. That is significant savings over the next 10 years. Thanks for help and ideas peoples.
Submitted September 20, 2017 at 08:28AM by Siian http://ift.tt/2fa1fux
