Hello,
Writing first time, found this forum a few months ago, very inspired to reach FI, hopefully in 9-10 years. I have difficult time to decide what makes more sense to do with my house..
My current savings are 60k and The equity of aprox. 136k in the house..
I bought my house in 2013 for 260k and put 100k down (obviously before finding this forum). That was my only savings at the time (inheritance) , mortgage 160k @ 3.5 30 yrs. I am newly divorced and it is only my 4 y.o. Son and I living in this 1,700 sa ft. Feels such a waste plus seems too much money tied in the house..when FI, most likely would move from the area because of high property taxes..
The current value of the house is about $285-290k..remaining loan is 149k.
My current monthly payment is 1,337 including taxes and insurance (taxes 5,100/yr and insurance 610/yr)
I could rent a flat for 800-900 which probably would also decrease my water and utilities bill by $80..
Another option I thought would be to refinance with cash out (79k based on 285 value). The quote I got from a bank is 3.65 plus 1500 in fees for a 30 fixed..228k loan- 1,040 mo payment , 1,516 with tax and insurance.
Ran rent vs buy calc and FireSim calc... Still not sure.
What would make more sense from the FI acceleration perspective ?