I have no idea what makes you think moving is a good idea. Not being snarky either, I just don't see how it would benefit you in any way?

you need to stay you will have more of pa payment if you do,

Do this,

pick a project, research the DIY stuff and do it take your time and you will be glad you did. We did so much over a few years that our house turned out perfect. pick small thigns first gain confidence and you are on your way

Why do you want to move again?

Anonymous wrote:Sale price minus commission = net sale
Net sale minus purchase price minus renovations = appreciation
If appreciation > $250k and home <2 years then taxes ye pay
Appreciation minus move cost, title, inspection = move cost
Defray by 1% of new home sale price = move cost with net defray
New mortgage at new rate total interest
Etc.

Gimme some numbers and I can do it for you

Cost of house
Cost of repairs
Current mortgage and rate and term
Approximate age of mortgage
Cost of new house
Assumed date when you buy new house
Temporary housing plan (if any)

This is the OP. PP, I now have the data and I really hope you come back to answer this!

Cost of house $600K
Expected sale price of house (I added this): $650-700K
Cost of repairs
Minor repairs (a necessity): $15K in supplies if we do it ourselves; $30K in contractors if we contract it out
Renovations (combination of our own work and that of contractors): $50-100K
Current mortgage and rate and term 430K balance @ 4%
Approximate age of mortgage I believe the mortgage has 25 years left - this is after 2nd refinancing - our payment is $3K/month
Cost of new house $650K[b]
Assumed date when you buy new house [b]Next spring, 2015
Temporary housing plan (if any) None.

Anonymous wrote:

Anonymous wrote:It's very pricey to buy and sell. On our 400k home that we're selling, 22k goes into closing costs (16k realtors plus taxes, title insurance, etc.). You will get hit by closing costs when you buy again too.

disgusting

+1!!! I'm the pp who's spending 16k and that's for Redfin.... 1.5% to seller and 2.5% to buyers agent. It's painful.

Anonymous wrote:It's very pricey to buy and sell. On our 400k home that we're selling, 22k goes into closing costs (16k realtors plus taxes, title insurance, etc.). You will get hit by closing costs when you buy again too.

disgusting

It's very pricey to buy and sell. On our 400k home that we're selling, 22k goes into closing costs (16k realtors plus taxes, title insurance, etc.). You will get hit by closing costs when you buy again too.

Don't move. You'll end up paying a lot to sell your house (minor fixing it up and agent fees) and to buy a new one (closing costs) for a mortgage that will cost more than your current one.

Focus on ensuring that your house is structually sound (fix roof, HVAC, pipes) but don't do any cosmetic updates (new kitchen, bathroom renovation) until you can actually afford it and I bet you won't have to spend nearly as much in home improvements as you're planning. Focus on saving for retirement and college instead of becoming even more house poor.

Anonymous wrote:Are you sure that moving will solve that? I have a crazy neighbor (teenager into drugs, cops by all the time, trouble in general), I'm worried something bad will happen. But who's to say new neighbors would be any better.

NP--just wanted to pop in to respond to this. We had various annoying neighbors, including one from hell, in our condo complex. Now we're renting an SFH--our neighbors are a dream come true. So quiet. No craziness. Escaping bad neighbors or other environmental problems can be done!

what is the environmental factor?

Are you sure that moving will solve that? I have a crazy neighbor (teenager into drugs, cops by all the time, trouble in general), I'm worried something bad will happen. But who's to say new neighbors would be any better.

I wouldn't move. The cost of selling and moving won't be worth it if you currently barely make your payment.

It's a home, not an investment.

Anonymous wrote:Sale price minus commission = net sale
Net sale minus purchase price minus renovations = appreciation
If appreciation > $250k and home <2 years then taxes ye pay
Appreciation minus move cost, title, inspection = move cost
Defray by 1% of new home sale price = move cost with net defray
New mortgage at new rate total interest
Etc.

Gimme some numbers and I can do it for you

Cost of house
Cost of repairs
Current mortgage and rate and term
Approximate age of mortgage
Cost of new house
Assumed date when you buy new house
Temporary housing plan (if any)

Wow, if I could make >250k in 2 years on a house, I'd be happy to pay taxes on it...

Sale price minus commission = net sale
Net sale minus purchase price minus renovations = appreciation
If appreciation > $250k and home <2 years then taxes ye pay
Appreciation minus move cost, title, inspection = move cost
Defray by 1% of new home sale price = move cost with net defray
New mortgage at new rate total interest
Etc.

Gimme some numbers and I can do it for you

Cost of house
Cost of repairs
Current mortgage and rate and term
Approximate age of mortgage
Cost of new house
Assumed date when you buy new house
Temporary housing plan (if any)

No, don't move. You won't get a mortgage below 4% and reducing your interest rate is really the only way you'd eventually recoup all of the fees associated with the move.

I think that if you are barely affording it, you should not make any plans that involve paying more for your monthly mortgage. Or did I miss something? Life is so challenging when you are struggling financially. (I know whereof I speak!)

I'm trying to figure out, objectively, if it makes financial sense to stay in our house or buy a new one. Whatever decision we make would be for at least 11 years.

- We've been in the house for four years. Interest rate is 4%. It is a barely affordable mortgage payment but we're sort of managing. It is very old and needs a lot of upkeep and updating (we've already done a lot of it). We would probably need to put in another $50-100K over the next few years, but given the age of the house we'll never be "done."
- The neighborhood is good, but: schools are 2nd tier (but very good), and there is one environmental factor about the house that we really dislike.
- If we sell this house and buy a new one, there's nothing more affordable in our price range. It would basically be for around the same price as we sell for, if not for around $50K more.
- Our house is not appreciating as quickly as those in the slightly more desirable neighborhoods we're considering.
- We probably wouldn't be sale-ready until next Spring and would spend the year on lower-cost maintenance and upgrades, but not do major updating.

So what do I need to consider to do a real calculation of where we should sell or not? I know that I need to assume a higher interest rate, closing costs, and commission, but what else do we need to consider financially, and how do we put it all together?

I would like to do a simple mathematical calculation to make it a more objective decision. Would appreciate any help!