I forgot to mention I can do a free market analisys for you as well to let you know the most you can get from your home. Just give me a call and we can meet and I will bring all the information with me.
Please give me a call anytime I am available 24/7, if you would like me to go over in detail and maybe we can sit and meet and go over some options and I can even call in our lender to help you out and we can have one meeting to help accomplish your goal.
I look forward to hearing from you and have a wonderful day.
Crystal Kasper, Realtor
My initial gut reaction is that if you want/need more living space, can't get it where you are, and would only save $60 a month in refinancing, then you'd be better off moving. But, as I say, that's just my initial reaction.
Chris offers an interesting scenario. You'd just want to make sure that you did maintain a positive cash flow on your initial property. Prior to the real estate bubble bursting, lots of investors followed a path similar to his suggestion. However, they overextended themselves, found out that they didn't have that positive cash flow, and then lost most or all of their properties. Work the numbers closely. If you're careful, that could be the way to go.
Don't consider a short sale, as someone here suggests. First, you aren't indicating that you have any sort of financial hardship. Second, you have tons of equity. Why would you even want to consider selling your home for less than you owe . . . less than $66,890? (Not saying that you do, of course.) That'd be absolutely crazy. If that were your situation, I know plenty of investors who'd be willing to pay you roughly $80,000 all cash. But you'd be far better off selling for $150,000, or anywhere close to that.
Hope that helps.
There is something bigger here for you too. You can refinance to lower your payment and rent the home which will probably generate another $500-800 a month in positive cash flow for you - that is like giving yourself a $6,000 to $10,000 yearly raise. When you refinance, you can take cash out for your downpayment and buy a new home. The positive cash flow from the existing home will cover a large part of the new mortgage. So, the best answer might not be an A or B decision but a A+B decision - do both - refinance, rent the home, and buy a new one. This strategy can be far more financially beneficial too you than trying to make an either or decision. Let one home pay for a new one so you have two assets instead of one.
The other benefit is the tax advantages of owning a rental property. You can save an additional $3,000-$9,000 just in taxes the first year of owning a "home based business" which is what you can have as a landlord. It doesn't require any additional work, its just how you structure your expenses and tax filings.
This is probably the first time something like this has been explained to you so I am happy to meet with you and explain all of your options. Using a strategy like this can easily double your money over the life of the project. If you sell and just buy a new home, you'll just have one home. If you rent and let one home pay for the other - you'll have two homes and monthly cash flow for probably pretty close to the same mortgage payment you have now.
You really should consider this. Please call or email me and we can set up a time to talk so I can explain more details (there aren't many, its actually pretty simple and I do it for many clients) and answer all of your questions so you can weigh the benefits. I'm right here in Fredericksburg.
I am a local Real Estate Broker in your area and would help you any way I can. Best of Luck.
Sun Realty of Fredericksburg
I will also suggest to refinance present home at a lower rate. Since you do have my e-mail please e-mail me back will be more than happy to guide you to a loan officer that will help in both your buying process and your refinance.
Let me know if you need a Realtor there, I have many old friends in the Fredericksburg area that could help.