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My household at present lives in FL however will likely be relocating to Colorado Springs for work. We purchased a house in FL in 2020 (VA residence mortgage, 216k principal, 3% curiosity, owe 199k, price ~350k, present fee ~1300/mo) and plan to hire it out after transferring for ~2k/mo. Our present residence wants ~15k in work earlier than renting (fence changed, timber trimmed, French drains). We are able to pay for this in money.
My job in COS can pay ~110k. I earn 44k/yr in VA incapacity (100% P&T), spouse earns 13k/yr in VA incapacity (60% however anticipated to extend, pending declare outcomes), and we’ll be incomes 53k/yr in GI Invoice BAH. The incapacity and BAH are tax free.
We plan to purchase a house in COS (not more than 550k) with a VA mortgage. We plan to reside in Colorado for a couple of years earlier than transferring on, and this residence will change into a rental property after then. CO offers 100% disabled veterans a tax exemption of fifty% on the primary 200k.
We are able to get a VA mortgage for ~6.5%, and have probability of getting a 2-1 curiosity purchase down from a possible vendor, however we now have a pair questions.
1) Rates of interest are anticipated to drop, would it not be price refinancing the mortgage in the event that they drop low sufficient? At what rate of interest would refinancing be price it?
2) Wouldn’t it be price it to take a 5 12 months HELOC or HE mortgage to make use of as a down fee to decrease month-to-month funds? Present charges are ~7-8%.
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