AN, simple, if you don’t sell the place today and move into a rental, your $160K down which is profit from the sale today, vaporizes. If you wait to sell after the slide, and you only have enough after commission for less than 10% down. So by waiting to sell, you have to finance $590K of the buy. That means 80% first, and a second for about $76K.
Buying the $800K after the 20% slide at $640K with $51K down = $589K in loans. = 80% first (512K) and a second of ($77K).
$512k @ 7% = $3406.35/month (PI)
$77k second @ 7% = $512.28/month (PI)
Total = $3918 plus PMI on second. That’s probably low since a second will run more. If you finance 90% LTV straight up, with probably run a point above prevailing rate making it 8% which would push the PI to $4300/month.
Versus $800k @ 6% w/20% down = $3837.12/month (PI) today.
No moving, no hassles, just the need to be able to make the payments.
