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My wife and I currently own a home and have a 15-year fixed rate at 4.50% that we have had for 3 years. We are considering building a new home but I can’t get over loosing such a great rate. We have done all the updates to our current home that we feel we can get the most out of it. We have to decide whether we want to take our profits on this existing home and build or continue to make changes in our house and price ourselves out of the market but have a better interest rate.

My question is…Does it make more sense finacially to stay in a house that was built in 1978 and continue to make improvement just to keep the lower interest rate or build a new house and pay a higher interest rate but less money in updates?

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Answer #1

I think you have a great deal and if I were you I would try not to spend any money on inprovements And just enjoy the breather. My mother in law just paid off her house after more then 30 years but she is only in her 50 and now has an extra 2000.00 a month to do whatever she wants even buy a dream vacation home. If you have extra money I would try to buy a small vacation home .The longer you keep your realestate the better you will be. I can also tell you Keystonecustomehome in PA is having a great special where the first 20 people to build a house with them in 07 are getting 1 year of mortgage payments paid by them plus 6 months of them paying your current mortgage so you have some time to sell..look for those deals in the state you are in. I have a 3000sq ft house with 5 bedrooms and a walkout basement on .50 acres and last year i paid 308,000.00 to build this house..alot depends on your states average house price look for the deals!!! or stay put for a little longer

Answer #2

You may want to funmail this user http://www.funadvice.com/photos/view/1994 who is a real estate professional. That is an interesting question, but I do know that your house should be built with safer materials than one pre-1978.

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