Wife and I have been going back and forth on deciding to either build a new house in the same neighbor we're in now, or update our current house (cash-out refi). We probably need a financial advisor at this point, but thought I'd put it our their on this forum to get some other thoughts.
We bought our current house in 2017 as a spec in the Prosper/Celina area north of Dallas.
- 2017 Purchase: $418k / 3500 sqft ($119 per sqft)
- Current mortgage: $300k / 3.8% / 30 year
- Current house comps: $170 - 190 per sqft ($595k - $665k)
The floorplan we've picked out is $700k-ish and we're trying to keep as close to the same payments as we currently have, but a lot has to go our way (rates still low 2 months before closing, our current house sells around the above comps, etc). They can't start building until November, so we couldn't lock in a rate till around June. I'm learning selling into a sellers market, then turning around buying back into it is certainly a difficult thing to do. The hope here is there isn't a huge markup with the builder the way resales have been selling.
If it's decided there is just too much unknown in building, then we may do a $100k refi, then turn 100% of that cash back into our current house (walk-in shower in guest bathroom, outdoor kitchen, extended patio, fire pit).
Of course a third option is do nothing...but what fun is that?
We bought our current house in 2017 as a spec in the Prosper/Celina area north of Dallas.
- 2017 Purchase: $418k / 3500 sqft ($119 per sqft)
- Current mortgage: $300k / 3.8% / 30 year
- Current house comps: $170 - 190 per sqft ($595k - $665k)
The floorplan we've picked out is $700k-ish and we're trying to keep as close to the same payments as we currently have, but a lot has to go our way (rates still low 2 months before closing, our current house sells around the above comps, etc). They can't start building until November, so we couldn't lock in a rate till around June. I'm learning selling into a sellers market, then turning around buying back into it is certainly a difficult thing to do. The hope here is there isn't a huge markup with the builder the way resales have been selling.
If it's decided there is just too much unknown in building, then we may do a $100k refi, then turn 100% of that cash back into our current house (walk-in shower in guest bathroom, outdoor kitchen, extended patio, fire pit).
Of course a third option is do nothing...but what fun is that?