Dear Big Move, My spouse lost their job during the pandemic and now our mortgages are well over the percentage of income/repayment guidelines. We have young kids and it made more sense to go the stay-at-home parent route given the cost of daycare.
We still have our first home that we rent out. We bought it for $200,000, and we still owe $100,000 on the property. It’s now worth $400,000, thanks to the California real-estate boom, and the fact that we bought in an up-and-coming neighborhood. I am so tempted to sell it and recast our current home loan so the payment will get us to the 25% income/repayment sweet spot, but we had planned on using the rental income as part of retirement. Also, the capital gains stings a bit. I will get a pension and recently opened a 457 retirement plan through my work. I’m 40 years of age. What would you do? Stressed Mom ‘The Big Move’ is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage. Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Aarthi Swaminathan at [email protected] Mom, I am sorry you’re going through dealing with your spouse being laid off while juggling two young kids at home. The job market has been tough for certain sectors, and is no doubt affecting your finances and your decision-making. But before you take action, figure out …
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We still have our first home that we rent out. We bought it for $200,000, and we still owe $100,000 on the property. It’s now worth $400,000, thanks to the California real-estate boom, and the fact that we bought in an up-and-coming neighborhood. I am so tempted to sell it and recast our current home loan so the payment will get us to the 25% income/repayment sweet spot, but we had planned on using the rental income as part of retirement. Also, the capital gains stings a bit. I will get a pension and recently opened a 457 retirement plan through my work. I’m 40 years of age. What would you do? Stressed Mom ‘The Big Move’ is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage. Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Aarthi Swaminathan at [email protected] Mom, I am sorry you’re going through dealing with your spouse being laid off while juggling two young kids at home. The job market has been tough for certain sectors, and is no doubt affecting your finances and your decision-making. But before you take action, figure out …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]