Highly likely to find another hon in SD as of now. Not many jobs around.
4 replies (most recent on top)
......Use Advice not Advise
This has got to be a joke..... Ok, this will depend first and foremost on (1) how much liquidity you have. Anyone who is a homeowner should have at least 6 months of liquidity. Me personally, I wouldn't be comfortable with less than 2 years of liquidity if I still had a mortgage. (2) It depends on how quickly you can find a replacement job and what the pay will be. Unless you have no immediate liquidity AND you can't find a comparable job, you aren't in a hurry to sell. It's too late to consider getting an emergency HELOC loan, because by the time you get approved, you might have already been impacted, and you won't qualify for a loan when you are unemployed. But next time, make sure you have a HELOC that you keep off to the side just in case. I keep one just so on paper if I want to buy another rental property, I can use that as a loan on that property, and then if I'm able to refinance that into a conventional loan. There are tax reasons for this because, when you buy a property with a loan, you can deduct the mortgage interest as a cost. However, if you buy a rental property with cash, and then do a cash out refinance, the mortgage interest on the cash out refinance cannot be deducted as cost on your rental. Only interest the "purchased money" can be deducted. So I routinely use my HELOC to bridge until I can refinance into a traditional mortgage. Many home purchases (especially the ones that are short sales), cannot be purchased with a traditional loan since the bank/seller will not want to wait for your loan approval, and because there are plenty of people buying short sales that can offer cash. But if you pay cash up front, you lose any sort of mortgage interest deduction if you subsequently cash-out refinance on that property.
rental money is not good enough pay mortgage in the current market for sure, but paying 6% commission sucks
Don't make rash decisions in a crisis.
Go figure out your options. How much you can get if you sold. How it would cost to rent. Map out various courses if events should occur. But don't just make a blanket statement of cashing in your chips of your house without understanding your options.