My wife and I want to go from a house we've been in for 5 years now worth $320k to a house that costs $560k. We're also at a 3.3% rate now, and will be at a 5.3% with the new house. Obviously our mortgage will go way up from what's practically nothing now. I'd appreciate some words of wisdom, but I'm not so much interested in anyone's crystal ball predictions on what the market will do.
We could easily save up a lot more money to get our mortgage down, but the problem is assuming even a slight appreciation in the market, the house we want goes up a higher dollar amount than the house we have with each passing year. If both houses go up 5% (historical avg), then the house we want will go to $588k, and the house we're selling will go to $336k. So as I save more, I'll take 3 steps forward, 2 steps back. Each year that passes that gap widens more.
We want the house mainly to get our baby girl into a better area. We bought this house originally not planning on having children. We changed our minds and now we find ourselves in a terrible school district. This means that the cost of living here will actually be $1,100 higher per month because we will need to put our daughter in a private school. Easily affordable for us here but we could be putting that towards a house in a better district.
We can afford this house, continue to have some fun, and invest into retirement. However, the wife will need to go from part time to picking up one extra shift a month. She does that, the math says we will be ok.
My concern is I work for Delta and make good money, but if something ever happened like a 911 or pandemic, I can't make that kind of money anywhere else doing what I do.
What should we do here?
We could easily save up a lot more money to get our mortgage down, but the problem is assuming even a slight appreciation in the market, the house we want goes up a higher dollar amount than the house we have with each passing year. If both houses go up 5% (historical avg), then the house we want will go to $588k, and the house we're selling will go to $336k. So as I save more, I'll take 3 steps forward, 2 steps back. Each year that passes that gap widens more.
We want the house mainly to get our baby girl into a better area. We bought this house originally not planning on having children. We changed our minds and now we find ourselves in a terrible school district. This means that the cost of living here will actually be $1,100 higher per month because we will need to put our daughter in a private school. Easily affordable for us here but we could be putting that towards a house in a better district.
We can afford this house, continue to have some fun, and invest into retirement. However, the wife will need to go from part time to picking up one extra shift a month. She does that, the math says we will be ok.
My concern is I work for Delta and make good money, but if something ever happened like a 911 or pandemic, I can't make that kind of money anywhere else doing what I do.
What should we do here?
