My background: corporate finance and financial planning.
We were in a similar situation:
purchased TV home with mortgage
refinanced primary home to pay off TV mortgage, just lucky we missed the absolute low refi rate by a week in Jan 2021
both houses are about the same value at purchase and currently
tax note: the refinance NOT INVESTED back into the same house, made the mortgage interest not tax deductible, however, didn't effect tax return.
The option of paying off primary was possible as only $10K remained on mortgage but we couldn't pay cash
for the TV house due to paying down the primary mortgage early.
However, remember the future is uncertain, so if you were to default on a mortgage,
which house would you want to keep?
Buying a house and not using it or renting it, is a costly purchase, especially if you rent the money,
and pay home ownership fees,
If not your homestead location, your tax base on the TV home goes up in tax value at 2X the homestead tax rate.
so estimate increase in tax base increase of 7 % per year over a 3% increase for a homesteaded home.
However, at your ages, I would suggest waiting for a bit and saving up a bit more and watching
The economic uncertainty is so high right now, more so than in a very, very long time.
Being able to work from home for the winter months makes the home ownership very doable for the cost.
Without it, and if your income is at any risk in any way, and having been employed for 20 years is not a guarantee,
its adding huge additional expenses for what reason right now?
please feel free to pm me if you want.
Have you done any detailed, line time expense, financial forecasting to determine
when you will run out of money if you made this purchase?
pm me if you have any financial forecast questions
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