| Sell my house and take the equity out of state? |
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scruby
New Poster
Cash: $ 0.45
Posts: 2
Joined: 07 Jun 2005
Location: Rancho Cucamonga, ca
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| Sell my house and take the equity out of state? |
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Well what do you guys think of this plan. Sell my house for $540,000 (I paid $146,000 for the house 7 years ago). Then move out of California to Colorado Springs, CO where I can buy a house of the same size for $200,000 put $100,000 down on this house and invest the rest of the money in various funds. I am currently living pay check to pay check and never have any money to take to kids to the movies and have never taken a good vacation with the family. Any how what are you thoughts on this plan? Is there another way to stay in California and have some money to spend? What sparked this plan is my wife got sick and could not work for 1.5 months we got state disability checks but what if for some reason she could not return to work or worse it happened to me. Please I am seriously considering this move if you guys have any thoughts good or bad let me know.
Thanks in advance, Scruby
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Tue Jun 07, 2005 7:18 am |
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jlee1224
Full Member
Cash: $ 12.65
Posts: 63
Joined: 26 May 2005
Location: Baltimore
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How much is your mortgage, and your monthly mortgage payments? How much do you make? How old are you and your wife?
As with almost all money situations, the more information you provide, the better the advice.
jl
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Tue Jun 07, 2005 12:37 pm |
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scruby
New Poster
Cash: $ 0.45
Posts: 2
Joined: 07 Jun 2005
Location: Rancho Cucamonga, ca
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| Here is more information, thanks |
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Hi jl,
Thanks for the quick response time, my mortgage is $170,000. We just refinanced one year ago to a 15 year loan the house payments are $2100 per month. I am 43 and my wife is 45. I have two kids on 13 and the other 15 years old I would like to help them when they enter college. I told my wife that we have a better plan when we go shopping than for our future, she made an appointment at church with a financial consultant I told her good maybe they will have another plan for us. I do not want to move but it seem like the only way if I stay were I am I will have enough time to save very much money.
Thanks, Louie
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Tue Jun 07, 2005 2:29 pm |
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Riz
Contributing Member
Cash: $ 5.30
Posts: 27
Joined: 22 Mar 2005
Location: San Francisco
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Scrubby:
Congrats! You got into real estate at the right time and your home appreciated quite well. As everybody know, it is way TOO expensive to buy property in California. The most important thing to consider before you decide wether to move or not; is to figure out what's most important to you. Your family or your desire to live in California. Another thing to think about is whether you will be able to make the same kind of money in Colorado? Do Colorado have the same kind of job opportunities as California. Also, you should speak with your children to see what they think about making the move. Also, let them know why you are contemplating the move. Cause they are going to be affected the most. I hope your wife is doing okay now 
Once you have done the above and have decided whether you are moving or not, this is what I would do. I would sell my house, after I have an area of relocation figured out. With the capital gain you are going to make I would think about buying a house that is big enough to accomodate your family (keep in mind, in less then 6 years both kids will be heading to college) but don't make the mistake of buying a house that is too big and expensive. I would think about a house in the range of 250-350k. I would think about putting like 20% down, which would be no more than 70k. With the rest I would put half of what's left over into an account for rainy days. I would start both kids a college fund, putting like 5k in each just as a start.
I hope you don't have a lot of debt. If you do, think about getting rid of it! ONLY IF YOU ARE NOT GOING TO BE BACK IN DEBT IN A COUPLE OF MONTHS
Also, you should start thinking about retirement!!!!!
"What we have today, is only as good as we preserve it for tomorrow"
-Riz
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Tue Jun 07, 2005 3:01 pm |
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jlee1224
Full Member
Cash: $ 12.65
Posts: 63
Joined: 26 May 2005
Location: Baltimore
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$400k growth in your house over 7 years is awesome! I say congrats to that first. I'm also wondering why you chose Colorado Springs as a potential moving place.
Also, I'm confused. Your mortgage is $170k, but you paid $146k 7 years ago. Did you refinance already?
I would research getting a HELOC (home equity line of credit). It seems you have about $370k of equity in your home. The bank should be able to let you open a $100k line of credit easy, depending on your credit. You can tap into it when you need the extra money, and you can control what you take out.
The risk is if you run the balance up to full, and then you are living paycheck to paycheck, you'll HAVE to move.
If the family is ok with moving, and you can get an equal or better job, moving would be a good way to get your equity out.
Just a reminder: Save for retirement first. You can always apply for financial aid and get loans for college. You can't get a retirement loan.
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Tue Jun 14, 2005 12:40 pm |
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