real estate advice

[PottersMom]

Not sure if this is the right place to post, but it is about saving $$ so I hope its ok. Refinace a crappy loan, or sell current house and buy a new house?
My head is spinning and I hope someone can share a little experience. I am currently in a 80/20 mortgage with a higher than average interest rate(s). My credit situation and available income has improved since I originally got my mortgage.:banana:
We can comfortably afford the current payments, but I was wondering if we should refinance and invest any $$ leftover, OR move into a larger "keeper" house. (basically, invest the $$ in a better house)
(We didn't plan on staying in this house for more than 3 yrs anyway)
If we sold the house I estimate that after the payoff of the loan we would have about 24k leftover. My question is, (thanks for waiting) :blush: How much does it cost to actually sell the house? I would use a realator, and I'm sure I would have to pay a lawyer. We would use whatever is left for a downpayment on a new place. I don't want to use our savings for that.
Is it worth it?

[comicguy]

I belive most realtors charge 7% of the selling price of the home plus lawyer fees and other associated fees.

[ducklite]

I can't speak for your state, but in NJ Realtor fees are generally 6% of the sales price, and your seller closing costs will probably be around $1000 including the lawyers fee.

My advice--don't sell. Refinance and continue to live below your means.

Anne

[barkley]

when we sold last year we paid out 5 percent to the realtor, a couple of hundred for the pest inspection-but that was it. the person we are buying from will be paying 6 percent to the realtor plus some kind of percentage of the entire sales price to the state. i think the expenses assoicated with selling a house vary from state to state.

but whatever the costs of a sale are-remember that moving into another house will also include moving expenses, new utility deposits (if to a new area), and any kind of fix ups you will do (thinking nothing major, but things like window coverings realy add up). that is in addition to the closing costs, points and loan origination fees you will pay as a buyer.

[ducklite]

when we sold last year we paid out 5 percent to the realtor, a couple of hundred for the pest inspection-but that was it. the person we are buying from will be paying 6 percent to the realtor plus some kind of percentage of the entire sales price to the state. i think the expenses assoicated with selling a house vary from state to state.

but whatever the costs of a sale are-remember that moving into another house will also include moving expenses, new utility deposits (if to a new area), and any kind of fix ups you will do (thinking nothing major, but things like window coverings realy add up). that is in addition to the closing costs, points and loan origination fees you will pay as a buyer.


I agree. When it comes to buying and selling real estate, $24K in equity is nothing. It likely won't even cover closing costs, Realtors commissions, and minimum down payment for the two transactions.

Plus when you buy a bigger house you "usually" have higher utilities, taxes, and upkeep costs.

It's far better to live below your means and have a "comfortable" budget than to be always stretched trying to pay bills.

Anne