No. of Recommendations: 5
we would consider renting this home if we left the area.

If you weren't going to change areas, would you consider moving into a different home in your current area, and becoming a landlord? Because if not, you don't really want to be a landlord, you just want to avoid selling your current home.

Sell your house.

The latest assessment has gone down in value to 155,200. If I remember correctly it was about 74/76,000 in 1991 at purchase. Could we take a full loan on this home to purchase a new home.. and what is a full loan?

A 'full loan' is probably 75% - 80% of the appraised value, so if your assessment is correct, that would mean $116k - $124k. However, at least while the home is not a rental home, you can't deduct the interest on more than $100k, as you are taking equity out of your house, so I would not recommend taking out any more than that.

Additionally, you have the issue of taking out money to buy a new home - which means that this loan would not be a loan on your primary residence, which means higher rates.

We are debt free but no money stacked.

Paying off your mortgage and trapping all your assets in your home without having adequate savings leaves you less flexibility in taking advantage of situations like this.

AJ
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