Buying a house advice re: mortgage

[QVCshopper]

My DH and I are thinking about moving for a few reasons: better school district, closer to work, bigger house, etc. The most important is the school district as my kids are entering public school and the majority of my neighborhood sends their kids to private schools. We figured we'd move to better public schools and invest our money in another house instead.

Of course, with this comes a bigger mortgage. We don't have a mortgage right now, and things would be tight until we sold our current home and had the new mortgage recalculated/recast. I think that can be done for a small fee... Then we would obviously have a mortgage ongoing.

So, would you do it? It's hard to give up the freedom of no mortgage, and DH aNd I are not risk takers at all. We scare easily and go with our gut a lot. We are fairly good savers, but most of our investments are in retirement/college funds. Thanks for your advice.

BTW, our school district isn't bad, this one is just better. Our elementary performs below the other two elementary schools that feed into the same middle and high school. PA and their townships...

BTW, the new home would probably be $150-200K more than what we'd get for our current home. Taxes are about the same, though, as the more expensive area has less taxes.

 

[casjen]

I think a good school is vital to a child's success. If you're sure the district you're in is underperforming, then I say move. I know others will say you shouldn't carry a mortgage, but when we bought both our houses schools was the priority for us.

Will private school cost less in the long run (13 years of school) than the mortgage?

 

[malibuconlee]

That's tough. A paid for house. How far from work are you currently? Do you like your neighborhood? Any way to add onto your current house if you feel you really need the room?

I'd be tempted to put the kids in private school (how much is tuition?) and keep my paid for house. Especially in this market and economy it's hard to beat.

Remember a larger house costs more to heat and cool and more time to clean!

ETA: In this market I also would not purchase a new home until I had my current one sold. This is from someone whose house is going on the market next Friday and moving into a rental in another state.

 

[QVCshopper]

That's tough. A paid for house. How far from work are you currently? Do you like your neighborhood? Any way to add onto your current house if you feel you really need the room?

I'd be tempted to put the kids in private school (how much is tuition?) and keep my paid for house. Especially in this market and economy it's hard to beat.

Remember a larger house costs more to heat and cool and more time to clean!

ETA: In this market I also would not purchase a new home until I had my current one sold. This is from someone whose house is going on the market next Friday and moving into a rental in another state.

Distance to DH's work is probably six to seven miles closer (we are about ten miles now) , we like our neighborhood, thinking about having another baby, thus the bigger house... I appreciate your thoughts, I'm torn on this one. Maybe a better option is to wait until (maybe) a house only $100k more turns up... And save lots and lots until then? I'm doing the no-buy thread!

 

[JDUCKY]

Have you looked to see if any short-sales or foreclosed homes are available in that district?

 

[QVCshopper]

Have you looked to see if any short-sales or foreclosed homes are available in that district?

There is one short sale that I know of, but it's not in a neighborhood. Maybe we'll drive by it, but we have to get more informed on short sales before going that route. Makes me nervous.

 

[Gr8t Fan]

My DH and I are thinking about moving for a few reasons: better school district, closer to work, bigger house, etc. The most important is the school district as my kids are entering public school and the majority of my neighborhood sends their kids to private schools. We figured we'd move to better public schools and invest our money in another house instead.

Of course, with this comes a bigger mortgage. We don't have a mortgage right now, and things would be tight until we sold our current home and had the new mortgage recalculated/recast. I think that can be done for a small fee... Then we would obviously have a mortgage ongoing.

So, would you do it? It's hard to give up the freedom of no mortgage, and DH aNd I are not risk takers at all. We scare easily and go with our gut a lot. We are fairly good savers, but most of our investments are in retirement/college funds. Thanks for your advice.

BTW, our school district isn't bad, this one is just better. Our elementary performs below the other two elementary schools that feed into the same middle and high school. PA and their townships...

BTW, the new home would probably be $150-200K more than what we'd get for our current home. Taxes are about the same, though, as the more expensive area has less taxes.

If it were me, I'd stay put and make do with what you have. The fact that you currently don't have a mortgage is HUGE IMO and frees you up to do so many other things.

Most people in my neighborhood send their kids to private schools too, but mine go to public schools and have gotten a tremendous education. Like your neighborhood school, ours doesn't rank at the top, but the teachers and principal are amazing and I feel like my girls have received a great education there. My oldest is now in one of the most challenging select enrollment public high schools in Chicago and doing just fine with her neighborhood public school education. In fact, their friends from private/Catholic schools in the area go to their school for special services like speech and LD classes.

The key for us has been that DH and I remain involved with the school and our kids and don't blame the teachers or school if our kids are struggling or having problems learning something. Instead, we make an appointment with the teacher(s) to find out what we can do at home to strengthen what they're learning in school.

 

[bethy]

I personally wouldn't even consider moving in your specific situation. Your living situation sounds almost as good as it can get IMO. Plus there might be some unknown downsides to moving that you can't predict, like the neighborhood culture, etc.

If the worst thing that happens is that you have to send your kids to private school - well - that's a lot less of a financial commitment than a mortgage. I'd try the public schools out first and supplement as necessary. And if that doesn't work out then I'd move them to private schools.

 

[v.t.]

Have you called the new district to ask if they offer open enrollment? School districts are changing policies to make up for federal budget cuts. I would call the district and see if there is any chance of your children attended either through open enrollment or by paying out of district tuition.
Good luck.

 

[ccgirl]

I think a good school is vital to a child's success. If you're sure the district you're in is underperforming, then I say move. I know others will say you shouldn't carry a mortgage, but when we bought both our houses schools was the priority for us.

Will private school cost less in the long run (13 years of school) than the mortgage?

Great point. How much would the private school cost? My DD's tuition is nowhwere near what a mortgage would be. Plus, God forbid, if something happened to one of you or a job you could always put your children in public (you say the middle and highschool are the same) but you end up losing your house if you have a large mortgage. I would stick where you are and invest in private schools.

 

[sam_gordon]

I'm GUESSING a mortgage of $150K will run about $1K a month. Do you currently have $1K a month to spend? If so, could that money be used to send kids to private school?

That $150K mortgage is also dependant on you selling your current house at the amount YOU think it would sell... not a guarantee in this day and age.

I think you need to take a close look at finances and mortgage rates in your area and see what would happen if your current house doesn't sell by the time you need it to.

I think I'd stay in the current house.

Good luck.

 

[Marionnette]

My DH and I are thinking about moving for a few reasons: better school district, closer to work, bigger house, etc. The most important is the school district as my kids are entering public school and the majority of my neighborhood sends their kids to private schools. We figured we'd move to better public schools and invest our money in another house instead.

Of course, with this comes a bigger mortgage. We don't have a mortgage right now, and things would be tight until we sold our current home and had the new mortgage recalculated/recast. I think that can be done for a small fee... Then we would obviously have a mortgage ongoing.

So, would you do it? It's hard to give up the freedom of no mortgage, and DH aNd I are not risk takers at all. We scare easily and go with our gut a lot. We are fairly good savers, but most of our investments are in retirement/college funds. Thanks for your advice.

BTW, our school district isn't bad, this one is just better. Our elementary performs below the other two elementary schools that feed into the same middle and high school. PA and their townships...

BTW, the new home would probably be $150-200K more than what we'd get for our current home. Taxes are about the same, though, as the more expensive area has less taxes.

We moved to a better public school district 16 years ago and never regretted it.

We had no mortgage at the old house and needed a bridge loan to pay for the new one until the old one sold. I wasnt crazy about that bridge loan but Im so glad that we made the move.

The old school system has gone from tolerable to pretty bad over the years whereas the new district has grown and improved over time. My children had so many more opportunities, exposure to the latest technologies, better preparation for college and expanded academic programs than if we had stayed at the former location. There is no doubt in my mind that we would have spent $$$ on private school tuition if we had stayed. That money went into our current house which has appreciated in value at a much faster rate than the old house.

Another consideration is that with the high academic standards that their school imposes, my kids were positioned for better college offers. They took multiple AP courses that were not even offered at the previous school disctrict. And the teachers were so good at teaching their subject matter that the vast majority of their students got 4s and 5s on the exams. That translates to college credits and early graduation or dual majors. The school also has a very high SAT average score in all areas. That can lead to scholarships. Lots of scholarship offers. The academic scholarships that my kids earned almost make up for the difference between what we paid for the new home and what the old home eventually sold for.

You only get one shot at your kids' early education. If you can give them that advantage then I feel that it is worth the sacrifice of taking out the loan. Pay it down as quickly as you can if it bothers you to have a mortgage. Just my 2 cents based on personal experience. Im sure that there are others who will disagree.

 

[Disneybuckeye]

We live in a crappy school district, but a great neighborhood where houses have still been selling and basically holding their value. Most of the kids in the neighborhood attend private schools as did my children. I loved their schools. They attended same sex high schools (very common where we live) and high school was a breeze. So great in fact that I wish they all were still there.
Many private schools also offer scholarships, work study, and other tuition assistance. I attended a very highly regarded public school, but my kids experience was a thousand times better and I would have paid double. All three also received tons of scholarship money for college, including full rides at several places.
I would seriously look into private schools and save the mortgage money.

 

[princessnoelly]

I think a bigger issue is the overall increase in additional expenses associated with owning a larger home. Water, insurance, gas, electric, property taxes, etc will increase.
My husband and I didn't take into consideration those expenses when we upsized to our current home before the economy started to decline. We didn't take the HUGE jump in property taxes and the yearly increases in utility expenses into account when we moved.

 

[ccgirl]

If I read your post correctly, the new home would still be in the same middle school and high school district as your current home. Is that correct? So, only the elementary school would be different?

 

[QVCshopper]

If I read your post correctly, the new home would still be in the same middle school and high school district as your current home. Is that correct? So, only the elementary school would be different?

No, the new home is in a totally different school district. My current elementary is the worst of three elementary schools that feed into one middle and one high school. By worst, I mean not as good test scores, after school activities, etc. My current school district has three townships, two are wealthier and mine is poorer, but my neighborhood is one of the nicer ones. Overall, the school district itself is decent, but it doesn't offer the sames things as the other one, if that makes sense.

Thank you for the feedback. I like my current home, but I don't love it. We bought it b/c we could afford it, then we accelerated payments so I could stay home with the kids. But, I ended up working part time anyway.

I know we are in the ideal situation. For a long time, maybe eight to ten years now, we have lived on just my DH's income, we save everything I make. But now my DD is almost in first grade (she's at my current school district's kindergarten center, which is very highly rated). And my DS is right behind her, going to kindergarten next year.

My house is probably looking at a new roof and windows in five years or less, so we're taking that into consideration. Ideally, it might be wise to save up a bigger down payment, target houses that would leave us with a $100k mortgage, and start fixing up the little things around my current house. I think if we scale back our retirement savings a little, we could save a bigger downpayment faster (we saved more than $30k in retirement last year alone, and we are only in our 30s).

Not sure how I feel about the private school route; it's not bad, but just not what I ever thought I'd do. Hmmm, will have to think more... Mortgage rates being lower are also another big factor to us. Again thanks, I appreciate it!

 

[v.t.]

It sounds like you have put a lot of thought into what is best for your family. If I were in your shoes, I would not rush into anything. I would continue looking for a more affordable house in a neighborhood you like while fixing up the current house and getting it ready to put on the market. While you are not in the ideal school district now, you can always supplement at home until you get in the better district. It doesn't take kids long to 'catch-up' and adjust to a new school while in elementary school, so you have a few years.
Have you looked into working for the new district? Employee kids are usually welcome at the school where the parents work.

 

[Pigeon]

I'd move to a better district, but I'd wait until I sold the first house to do it. No way would I pay private school tuition, which around here is about $20k per child per year for a good one. The cheaper ones (pretty much all religious) are lousy.

The school district is the number one factor when we've looked at houses.

 

[Marionnette]

Have you looked into working for the new district? Employee kids are usually welcome at the school where the parents work.

Not in the public schools in PA (which is where the op lives). If you are not a resident of the district then your children cannot be educated there without paying non-resident tuition (which is much more than private school tuition).

There are school districts that have such a problem with kids enrolling with an aunt or grandmother's address but actually are living in a neighboring district. Those districts have full-time employees that track these students so that they can be removed from the rolls. Schools in PA are mostly funded by the local taxes with a small amount coming from the state so attendance by non-residents is not very welcome. It's also one of the top reasons that the school district that a house is located in can have the biggest influence over the value.

 

[QVCshopper]

We are most likely moving. Thanks for your thoughts!