Savings Challenge
 
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Savings Challenge
Have the gift of thrift? Share your stories about haggling down prices, finding great deals, and creative ways you have cut down on your spending.

"Ultimate Cheapskate" Jeff Yeager will be chiming in your discussions. Post your comments, photos, videos here to the group. Be sure to check out money-saving tips from the Savings Challenge.

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Have fun!

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durkinr said:
on November 21, 2009 01:41 PM ET

Kids are gone, sell the big house and buy down with equity, end with NO mortgage. 
4 posts by 4 users
SeaLady61
Post #4
SeaLady61 replied to durkinr's Post #2 :
on November 25, 2009 11:58 PM ET

If  you want to sell so you can downsize, I see no reason why you shouldn't do so at this time.    My reasoning is your home value may have gone down in this recession however  the house you'll buy also lost value...so it evens out.  You'll also get rid of your mortgage payment...a big savings. You may even find a fantastic deal...developers are giving houses away in some areas.   Some states are better off than others.   BUT, I would do a lot of homework. First make sure you have your current house appraised  so you have an idea what the market value is...not what you think it's worth. I say "idea" because I'm not convinced home prices have stablized in certain areas of the country.  You really need to have a good estimate of the amount of money you'll have in hand to make a new CASH purchase. Second,  look at what's for sale in the area you want to live and if the dream home you've alway wanted fits into your CASH budget.    Don't forget to figure in the closing cost of selling your home and expenses involved with the new purchase including moving and other expenses that always seem to pop up.  The cost can add up quickly!  Best of luck...


mm110south
Post #3
mm110south said:
on November 25, 2009 10:43 PM ET

Kids are gone but hopefully they come back often for visits so maybe it isn't time to sell and buy something smaller.  Also with the market the way it is, it is a bad time to sell.  It may be best to hold on for awhile and wait for things to get better and then sell.  If you can hack the monthly note wait.


durkinr
Post #2
durkinr replied to Al56's Post #1 :
on November 22, 2009 09:39 AM ET

Yes you are correct.  I make one assumption, in that most AARP members may have owned their homes for some time thereby having a significant amount of equity.  If this is not the case then all bets are off.

I have owned my home for over 22 years and have a good location which should sell it easily, I do have enough equity to hopefully end with a newer home (the one I've always wanted) with no mortgage.

At least this is the plan that I am working towards.


Al56
Post #1
Al56 said:
on November 21, 2009 08:32 PM ET

 

Please excuse me but I don't understand what you mean when you say buy down  with equity.  You mean with what the house is sold buy a new one with that money cash. 

 

With this recesion houses are worth less and would it be possible to buy a house worth it.