Ok, bear with me. I'm here to learn, and some of these questions might be really simple. There's a decent chance that I'll be changing jobs soon and that means buying a new house in a different area. Our goal is to upgrade the quality of home we live in when we move, not have to pay PMI, and borrow the money the smartest way possible.
I'm going to lay out all of the possible ways I could receive money to buy a new house, and let the conversation start from there. I'm trying to wrap my head around what will make the most sense.
-We still owe around 80k on the house we are in now, and it was recently appraised at 140k, but I think that's a little high to be honest. I'm also afraid of how long it will take to sell. HUGE buyer's market here and even really nice homes can sit forever.
- Our max amount for a new home purchase will probably be around 200k (Probably more like 180k). We'd be living in a cheap part of the country.
- We would probably be starting another 30 year term, which is hard to swallow.... I'm 38
- I have 90k in a 403(b) that I can borrow money from over 10 years, and the rate is lower than current mortgage rates, plus I'm paying myself back and the money stays in the market while I do that. I'm thinking of borrowing a decent amount of this to use as a down payment to avoid PMI.
- I also have the option to just withdraw some of this money to use as a down payment (I'll incur a total hit of 30% when this is all said and done though) but it would be less I'd have to pay back and lower my payments per month.
How should I be thinking of approaching this?