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kallima
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 04 Dec 2011
Location: NC
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| Rather Save or Pay off mortgage |
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My family is in the position to upgrade houses but this move will require a sizeable downpayment around 60-80K to get a for a house between 250 - 325K
My question is my current house already has about 50K in equity in it with about 50K left in the mortgage. Would it be more beneficial to save the remaining amount for a down payment, or pay more on the mortgage principal? Both to me seem to put money in your pocket since I will sell my current home to upgrade.
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Sun Dec 04, 2011 8:08 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
save the remaining amount for a down payment, or pay more on the mortgage principal? Both to me seem to put money in your pocket
It doesn't matter, it is the same money. If you move your $50k from a bank and put it in your house equity, you get $100k at closing when you sell the house. If you leave $50k in the bank, you'll get $50k at closing when you sell. So, either way, you end up with $100k cash.
As for the upgrade - do you need a house that large? A $300,000 house in NC sounds kinda big?
I ask this because the housing trend seems to be for smaller houses. Thru most of our USA history, family houses were in the 1400 sq ft (altho there were some victorian mansions built in the 1880s). The 2500' to 3500 sq ft McMansions happened mostly in the 1990s and early 2000's and the trend pretty much burned out in 2006. McMansions were a status marker in those years.
But now families are looking at greener houses, small, very efficient, well-built. In 10 or 20 years the costs of heating/cooling the big houses could be burdensome. At that time, big houses will be hard to sell - so their prices will go down.
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Sun Dec 04, 2011 8:42 pm |
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SFOasia
New Member
Cash: $ 1.80
Posts: 9
Joined: 27 Oct 2011
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If your family want to upgrade the house then you must take the equity house loan because the value of your house is too much.Its very interesting time now to buy or upgrade the size of our houses.
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Sat Feb 04, 2012 6:20 am |
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