Simultaneous sale and refinance or stay put?

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I have a dilema. I am in an ARM set to adjust in August 2008. I have a 12,500+ prepayment penalty that falls off in June 2007. If I refinance and keep the house I would have to get a new mortgage at around $ 400k. If I sell the house outright I could sell it for $ 430k. Should I sell take the profit and move into an apartment for a little while and save as I want to move out of state within 2-3 years. Sell my existing home and purchase a cheaper home by rolling the profit from the sale of the home I am in now. Or should I stay in my existing home by refinancing and getting an FHA loan. My motivation to stay is to keep my daughter in her school which she loves and doesn’t want to leave. The purchase of a new home in the area and an apartment would allow me to do so. Once she finishes 5th grade I plan on moving to the NC area.

2 Comments
  1. Reply
    v b
    May 2, 2011 at 4:06 am

    “Sell my existing home and purchase a cheaper home by rolling the profit from the sale of the home I am in now. ” You can’t roll the profits any more. This changed in 1997, now you are either eligible to exclude gain or you are not.

  2. Reply
    Miss Lillian
    May 2, 2011 at 4:35 am

    Reality, you have no profit if you are talking the difference between 400 and 430K. First you have NOT sold it for that so you don’t know what your offers would be and then the commission, moving expenses and on and on.

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