Housing situation

First, talk with a loan officer to see what sort of rate you would be looking at and if he advices you to pay off the car loan in full to possibly get you locked in at a better rate.


Until then we’re all just spit balling.



Except don’t sell your Stonks. That should be your last resort. Quit throwing loose change in the account for the time being, sure.

I would sell current home and take equity and payoff car and then use 5-10% towards down payment.

In your post you didn’t mention anything about retirement accounts …do you only have brokerage and no tax advantage accounts like IRA and Roths?

If you don’t you should take some of the remaining equity from home sale and fund those.

Also if you don’t have emergency fund 3-6 months make sure you keep enough and just dump in HY savings.

quote:

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I’m currently in a DSLD neighborhood was my starter home

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How many houses for sale in your hood?

Buddy in a DSLD hood has had his house on market for 6 months. 0 offers. Have lowered price twice

Yeah notice that. I think 1 currently for
Sale For 286k been on The market 3 months. I plan to
Let the realtor guide me on pricing for mine but I’m ok
Taking a little Less To Sure up what I think Is a good deal long term. I bought when it was 200k in 2020

quote:

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hesitated to fund an Ira strictly bc of the age limit to retrieve the money

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Don't hesitate further!
You can always pull Roth IRA contributions with no tax or penalty . There are several other methods to access IRAs early. You can use 72(t), Roth conversion ladder, or transfer to 401k and use Rule of 55.

I'd be very reluctant to give up 2.375% and would crunch #s to see if renting it makes sense.
I wouldn't pay off 4.5% auto loan to borrow more on house at higher rate. If you can't afford both you're likely stretching too thin anyway.
I'd put 20% down to avoid PMI keep rest of my capital invested so it keeps growing and is accessible if needed. That should give more peace of mind than having more $ tied up in home equity not easy/cheaply accessible in a contingency.
What is your tax bracket situation? I'd use brokerage to fund down payment (if keeping rental home) but avoid short term gains or LTCG above 15% rate. You may even be looking at zero LTCG rate on some brokerage gains and of course, basis isnt taxed. If in a higher bracket facing 20% LTCG or most your gains are short term I'd be more reluctant to tap brokerage. With recent volatility you may even have some losses to harvest just watch out for wash sale rules.

with the current rate being around 6.5-6.75% on a 30yr mortgage this doesn't make since to me. Home prices are falling in the baton rouge area. We are least 2yrs from rates going to 5.5% and that will be the floor on rates. I have been a mortgage loan officer for 20yrs now. I say it all the time, people treating houses like cars ( wanting a new one every 5yrs) is a horrible idea but keeps me in business. your going to take all the equity you have to get to a 15% down payment on a new home and your mortgage payment is going to double.