Real Estate question for homeowners

[csa12]

Hi everybody -
My husband and I refinanced our home last year (5/1 ARM 4.75%) and he recently came upon an awesome house for sale that we are liking more and more. I am wondering, before I initiate talk with our accountant/mortgage broker, are we losing too much money if we consider a move and have to redo our mortgage? This potential home has more space and we are really feeling like we are all on top of each other in our current home. When we refinanced last year there just weren't any doable homes for sale so we just decided to refinance. We plan on staying in the area for another 2 1/2 years after which DH will be done with his residency. Appreciate any info from more experienced homeowners!

Cheryl

[COElizabeth]

I think it would depend on how much you paid in closing costs when you refinanced and how much your monthly payments decreased. Those two factors would determine how long you would have to be in your current home to "break even" on the refinancing.

Elizabeth, Mom to James, 9-20-02

[etwahl]

i would look at it in other terms, other than just the closing costs you paid on your refinance. for example, will you be A LOT happier in the new home? can you make some good money selling your current home? will the new home increase in value more quickly? will it be easier or harder to sell if you do move in 2.5 years? there are so many factors. if you lost a couple thousand right now because of the refinance, you might make that AND MUCH MORE by having a house that you like more and were able to sell at a higher rate. plus, i don't know what rates are right now, but you could probably get a good rate with a 5/1 arm.

good luck! do what feels right in your heart.

Tammy,
Mom to Lauren Genevieve
03/12/2003
www.evantammy.com

[mharling]

My answer was going to be a combo of Elizabeth's and Tammy's. I would figure out if/how much you've recouped from your refi and then consider what new costs you would have..... cost of another mortgage, moving costs, supplying and cleaning a new house, higher monthly payments, etc. And then determine if your total cost is worth it to you for the benefits. Good luck!! I'm sure this can't be an easy decision.

Oh, one other thing I was going to mention was if there's a possibility you'll have another child before your dh's residency is over and you move again. Factor in whether or not there would be *enough* space in your current house.

Mary & Lane 4/6/03
http://www.shutterfly.com/osnt.jsp?i=67b0de21b356c32425b2 - Halloween Pics!

[csa12]

Thanks so much for the great advice. This is our first home so I am still new at figuring out this mortgage negotiation stuff, but you have all given me some good starting points to help me make a decision. I think in my heart I care more about having more space (esp. for baby #2) than losing money if it is just the closing costs.

Plus it is too much fun house hunting, so I wanted to be smart and have an idea whether we can afford to move FIRST before looking at houses.

Thanks again for the feedback!!
Cheryl