Need some insight on my situation. Currently mid 20s, married with one kid. Wife stays home with our child. I make “good” money for my area. Around $80-$100k in Appalachia where the median household income is around $50k. I bought our house a few years back at 3% for $120,000. Mortgage is a little over $600 a month. Problem being, it’s quite small for us. So my plan was to move back in with my parents to save money for a large down payment and attack all consumer debts. We have a vehicle loan, a smaller vehicle loan, a medical bill, and a small student loan of hers. Stupid, but we got married and had a kid quicker than we planned. But if we moved back in, I could pay off all but the primary vehicle loan with the sell of the house, and still have around $30,000 to begin our down payment savings. My biggest reason for wanting to do this is our lack of an emergency fund. I have a few thousand in there but I’d like a full 6 months of expenses. I feel like eventually on the current path, something will inevitably happen and eat up the emergency fund we do have, and with the other bills, we’d be in the typical American cycle of slightly north of paycheck to paycheck. I view the move as a chance to get right financially, and set up my family for success down the road. I’m motivated to do right, and my parents and I get along great. Always have. They really love my wife and kid, and have plenty of room to accommodate us, and have said they’d be on board with it. Anyone ever done this before? Basically hitting the reset button and getting right financially
With a $600 mortgage and low interest, don’t sell. Living with others can strain relationships and limit privacy. Consider your tolerance before deciding.
@Jas It would still be more space moving in with them lol. My house now is just under 1000 sq ft. Theirs is 4 stories. But I’m sure it wouldn’t be ideal, I just look at it as a temporary sacrifice for the long term betterment of my family. Going into a bigger home, I’d have a sizable down payment and be looking at around $200,000 where I live at. But with no other debt besides the mortgage and a healthy emergency fund. I’ve not fully made my mind up just thinking about it
- Lots of families raised kids in 1000 Sq. Ft.
- Your parents offered this or are you asking them to let you guys move back in?
@economist1 That is true. It’s doable for sure just not ideal. There’s more to it than just the home itself. It’s location in town, small town and quiet street but in town nonetheless, school district etc. But I was talking about our plan to move in the next few years and they said well you could trim a lot of time off of that if you sold your house and moved in here. So that kinda started the thought process
So you’d sell your house at 3% and go get a bigger house at a much higher %?
And do this on 1 salary? What are your full expenses? You’re essentially hitting the full reset right now by being in an undersized but very cheap house situation. Without knowing the full picture this sounds like a terrible idea but there are far too many unknowns that you haven’t provided for anyone to give any input with true value you can take away.
@EARTH Looking at $200k for the house we want, saving for 1-2 years. I bring home $5k/month. Current expenses: $700 truck payment, $600 mortgage, $180 work car, $60 student loan, $600-$800 groceries, $200 utilities, $60 medical bill. Selling the house clears most debt except the truck, allowing us to enter a new mortgage with minimal consumer debt. Bought this house as a starter, but it’s not our “forever” home.
What kind of interest are you paying on the truck? How long until it is paid off? The monthly there is more than your mortgage. Truck will only depreciate. House is likely to increase in value. Stay until you have equity to move to the bigger house.