Looking to upgrade from a 1900sqft home to a 3200sqft with an impending arrival of a couple of new babies. New house is ~$460k and old house is estimated at $335k before fees.
Question: With interest rate around 6% for a 15yrs and 6.5% for a 30, should i just pay cash for the new house?
Other factors to consider:
- i may rent out the old house. otherwise will have about $150k in equity from the old house.
- $2M stock portfolio (including 401k, roth, hsa): $1.4M in regular brokerage.
- $560k in debts: $200k student loan, $200k mortgage on a rental property worth around $400k and $160k mortgage on the current home (worth $335k). All of the loans are 2-3% rate.
- Monthly income: net $12K take home after tax, retirement contributions, HSA contributions and health insurance. $200k gross income. Single income so if i lose my job temporary, we have no income coming in.
- emergency fund: $50k
- long term capital gain from liquidating stocks to buy the new house: $70k at 15% tax so around $10k tax
Question: With interest rate around 6% for a 15yrs and 6.5% for a 30, should i just pay cash for the new house?
Other factors to consider:
- i may rent out the old house. otherwise will have about $150k in equity from the old house.
- $2M stock portfolio (including 401k, roth, hsa): $1.4M in regular brokerage.
- $560k in debts: $200k student loan, $200k mortgage on a rental property worth around $400k and $160k mortgage on the current home (worth $335k). All of the loans are 2-3% rate.
- Monthly income: net $12K take home after tax, retirement contributions, HSA contributions and health insurance. $200k gross income. Single income so if i lose my job temporary, we have no income coming in.
- emergency fund: $50k
- long term capital gain from liquidating stocks to buy the new house: $70k at 15% tax so around $10k tax
Statistics: Posted by gazelle1991 — Sat Jun 22, 2024 5:08 pm — Replies 10 — Views 640