First post, been reading this site for a few months. Recently had some epiphanies in my life and my wife and I have gone back and forth on selling, my son turned 4 recently so we want to settle in one area for his schooling. I live in the Chicago area, we love our home but it's rather large for us and too far from work. We want to move midway between our jobs ( I commute 32mi/45min-1hr each way, my wife is 18mi/30min). I set a goal to FI in 10years, and possibly FIRE by then as well. Homes my wife are looking at are going to cost ~$450K-500K, I ideally want to stay below that. I don't want to increase our mortgage burden, but its hard to avoid, moving inward towards the direction of Chicago costs more in areas people want to live (i.e. good school districts). Thinking about the true cost of commuting and every mile closer articles.
Why do we want to move?
-time lost driving=less time to spend with my son
-taxes (my area has "good" schools, but is funded 75-80% by homeowners-very little commercial where the schools are located). Our township has increased 30%. It's highly possible we could be paying $18k/yr in taxes soon.
http://www.dailyherald.com/news/20170531/where-rising-assessments-are-boosting-property-tax-bills-most-maintenance on this oversized home will drain us long term, some of it is because of the time factor.
-it is not my wife's dream area to live, but I think we have a decent community for activities and amenities. The library is fantastic.
My wants-Closer commute (30min or less)
-bike to grocery, library, parks
-walking/biking distance to schools
-nearby parks
-kitchen that works, good sized family room
-3 beds/2baths
My wife's want list-white trim
-2.5 bathrooms and kitchen of her style
-good public schools
-no split levels
-character (to me this means something that requires more maintenance)
Market Value: $470K
Original Purchase price: $385K
Original Mortgage Amount: $365K
Interest Rate: 3.375
Mortgage Term: 30
Term remaining: 29
Amount remaining on mortgage: 349K
Gross Rents:
Principal and Interest (the P&I of your PITI - should match with the above info): 1670/m
Taxes and Insurance (the T&I of your PITI): 2200/m
HOA costs: 200/yr
Deferred maintenance notes:
So does it make sense to increase my mortgage to achieve some other benefits? I know it sounds like I am asking for permission, but really do want honest feedback. Taxes will go down ~4K-5K a year.