Is a mortgage our best option? (loan, interest rate, property tax, heloc)
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We are selling our current home which should leave us with about $245K to spend on our next home. If we found a home we wanted for lets say $285K, we'd be 40K short. Is a mortgage the best option for such a small amount. What are any other options?
We are selling our current home which should leave us with about $245K to spend on our next home. If we found a home we wanted for lets say $285K, we'd be 40K short. Is a mortgage the best option for such a small amount. What are any other options?
Hollynla
Read your other posts to see your in southern Louisiana. Your looking for privacy with a lot of acreage. That you and your husband were considering parts of Colorado, North Arkansas or southern Missouri.
Years ago was a vendor electronic source inspector, had the opportunity to visit and work many states across the country. There are a lot of similarities between the states, bottom line what places different are the people. Have you considered Texas? Friendly attitude, low cost of living, low land prices, good weather, cheap gas, lots of space, etc.... Plus it can be within driving distance for family and friends still living in Louisiana.
My analogy is base on stability, managing money, maintaining high credit, and living cheap (not knowing your total financial picture).
Good credit 100% determines how much it costs to live, it also defines opportunity's that you could take advantage off in the future. It would be more beneficial to take out a larger mortgage and put the rest in savings (lower interest rates are available for mortgages over $100k). That way you can make more than the required payment, shortening the term and lowering the net effective rate. Sending extra with the normal payment gets reported to the credit bureaus as you being more responsible, as the result your credit is high. Contrarily spending every thing in one shot, then having a small loan. After it is paid off there will be nothing driving your credit score. After a short period of no reported activity your report goes "NA".
Good Luck
.
Last edited by Modification Specialist; 12-16-2014 at 11:31 AM..
Read your other posts to see your in southern Louisiana. Your looking for privacy with a lot of acreage. That you and your husband were considering parts of Colorado, North Arkansas or southern Missouri.
Years ago was a vendor electronic source inspector, had the opportunity to visit and work many states across the country. There are a lot of similarities between the states, bottom line what places different are the people. Have you considered Texas? Friendly attitude, low cost of living, low land prices, good weather, cheap gas, lots of space, etc.... Plus it can be within driving distance for family and friends still living in Louisiana.
My analogy is base on stability, managing money, maintaining high credit, and living cheap (not knowing your total financial picture).
Good credit 100% determines how much it costs to live, it also defines opportunity's that you could take advantage off in the future. It would be more beneficial to take out a larger mortgage and put the rest in savings (lower interest rates are available for mortgages over $100k). That way you can make more than the required payment, shortening the term and lowering the net effective rate. Sending extra with the normal payment gets reported to the credit bureaus as you being more responsible, as the result your credit is high. Contrarily spending every thing in one shot, then having a small loan. After it is paid off there will be nothing driving your credit score. After a short period of no reported activity your report goes "NA".
Good Luck
.
Thanks for the info! We really aren't very interested in TX. High property taxes, super hot summers (southern half), and not really shorter drives back to LA. It took us 12 hours to drive home from Amarillo. As for the mortgage, even if it's paid off, we'd probably always have a car loan out at some point. It does look like we'll be taking out a mortgage, I'm just dreading all the paperwork that comes along with it. Our credit is perfect. We never had a single strike against us or late payment our entire lives and once we sell our current home, we will have no other loans out with very comfortable income.
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