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.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.