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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: BCpuppy on February 17, 2017, 09:11:19 PM

Title: Should we downsize?
Post by: BCpuppy on February 17, 2017, 09:11:19 PM
So before I decided MMM, we decided we need to buy a house when we move to our HCOL, no cheap rental area. We bought a 269500 duplex a little over a year ago which is 18 mi in one way for my husbands work and 12 mi in the other direction to mine.  It's it a good idea to downsize to a 200,000 house that is walking distance to my husbands work?

Current duplex with no yard, new construction
3 bedrm, 2.5 bath, attached garage
Purchase price 269500
Current Mortage 241000
Pita 1384 (including 128 for PMI)
Hoa 40/ month
Insurance 500/ yr

Possible house, lg yard, walkable, built originally in 1918.
2 bedrm 1 bath 1000sq ft detached garage
Listing price 195000
Down payment 39000
Pita 730
Hoa none
Insurance 500 yr

 I can drive the electric car and my husband could walk/ bike to work.
However, we may only be in this area for another 3 years.  We had originally hoped to just be able to rent but the rents are insane here 1800-2200 for a 2 bedroom.
Is it still worth it? Our other option would be to reappraise the house to get out of PMI since the house market has jumped up significantly.