Should we take the money??

[scaredyclassic]

Condo in Boulder 100k.

Sounds like a plan

[scaredyclassic]

Dupe

[scaredyclassic]

Mysterious dupe

[svelte]

[quote=lpjohnso]

We love the house, the schools, the neighborhood and town so much that we could happily stay here until the house is paid off. After everyone’s help on this thread and much discussion, we are going to pick up some extra shifts at work, sell a kidney or 2 on the black market, and go with Option #1.

Thank you all so very much :)[/quote]

Wise choice, except the kidney part.

I’m very familiar with SM and can tell you for sure Option 1 is your best choice given your situation.

It will be painful for awhile trying to make ends meet, but using some of the suggestions on here will help out a lot.

The rental market in SM right now is hell with a lot of competition for few units. And your rental costs would be sure to go up yearly.

No, you guys made a wise move in buying your place. Let that equity continue to grow.

[gzz]

I agree with EconProf. If you sell and buy again later you will lose your low property tax base, have to pay the realtor and other fees, lose your mortgage deduction. You will also have a higher rate on your new mortgage, FHA loans at 3.375 are long gone.

Get a HELOC if you have high interest debt you can repay and have the discipline to resist further debt.

[FlyerInHi]

Colorado., I knew it!! I’ve heard countless people talk about places like Boulder and Provo, UT.

Californians who move to Vegas or Phoenix are generally miserable. But I’m loving Vegas though. No state income taxes is like getting a nice free house.

[spdrun]

LOL, what I pay in income taxes in NY, I save in car payments and gas … I don’t need to drive day-to-day, so I can be happy with a 30 year old car that I drive occasionally.

[joec]

I agree with the others that staying put makes the most sense too. No one knows the future and I was in the same boat in terms of savings…I had to sell a lot of outside assets (stocks) at a bad time 2009 to put tons more down to buy a house (bad loan environment). Luckily, housing has recovered a lot and I don’t know what will happen, but if I was still in stocks, maybe I’d sell out and waste the cash (certainly easier with kids and wife). With the money in the house now, it’s stored equity I don’t expect to tap, but should make life easier in a few years when housing cost will always be there, but your payment goes away or down.

One point that should also be brought up is if you are a single guy, you really don’t know how single women or single women with small kids feel in poor or unsafe areas. The constant gawking, staring from unsavory men, etc…

Unlike men who may want women to stalk or show interest, women are terrified if there are strange men/stalkers following them or showing too much interest.

This is also why women tend to not want unreliable cars since they don’t want to be “stuck” in the middle of nowhere…Men don’t really expect to get raped I don’t think (or will feel lucky if they did)…

All that said, 3 kids, in an area you like in 1400 sqft isn’t too much space. Not being a fan of dogs, those are huge expenses with just 1 vet bill so if they age, maybe you can go with less dogs in a few years.

Also, with 3 kids, a wife and college, trips, events, etc… cashing in the equity is sorta a guaranty you will spend it.

With no pets and 2 kids and a wife, I already feel totally overwhelmed since the money call isn’t always yours to make in a marriage.

Best of luck.

[CA renter]

lpjohnso, I think you’ll be very happy about your decision to stay put. Great choice. Best of luck to you and your family!

And save, save, save!!! 🙂

[cvmom]

[quote=CA renter]lpjohnso, I think you’ll be very happy about your decision to stay put. Great choice. Best of luck to you and your family!

And save, save, save!!! :)[/quote]

I agree! I highly recommend http://www.mrmoneymustache.com , they have a great forum, lots of money-saving tips.

[CA renter]

[quote=cvmom][quote=CA renter]lpjohnso, I think you’ll be very happy about your decision to stay put. Great choice. Best of luck to you and your family!

And save, save, save!!! :)[/quote]

I agree! I highly recommend http://www.mrmoneymustache.com , they have a great forum, lots of money-saving tips.[/quote]

That’s a great blog!

[Anonymous]

– What’s the amount of your consumer debt?

– What’s the rate?

If the rates are high and a sizable portion of your “paycheck to paycheck” cash flow is interest, then #2 would make sense if you can get a substantially lower rate on the HELOC.

Only sell the house as a last resort. The low interest rate you have is something you want to keep for long time.

This, and the Tightwad Gazette.

[Coronita]

[quote=harvey]- What’s the amount of your consumer debt?

– What’s the rate?

If the rates are high and a sizable portion of your “paycheck to paycheck” cash flow is interest, then #2 would make sense if you can get a substantially lower rate on the HELOC.

Only sell the house as a last resort. The low interest rate you have is something you want to keep for long time.

This, and the Tightwad Gazette.[/quote]

Bad idea shifting insecure debt to one that is backed by your primary home. If push comes to shove, one could probably negotiate a settlement with an insecure debt much easier with say a credit card company than one can with a HELOC these days, if it really came to that.

[livinincali]

If you were super disciplined (definitely banking the money and not using it for some other purpose), believed that inflation will remain low and home prices will come down in the future, option 3 makes some sense. Of course that’s a lot of what ifs that aren’t guaranteed. $500K for 1400 sf even in San Diego feels a little bubbly to me, but I gave up trying the rationalize the housing market, it’s driven by emotion way too much.

[Anonymous]

[quote]Bad idea shifting insecure debt to one that is backed by your primary home.[/quote]

So should they start making extra mortgage payments with their credit card?

[Author]

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