Any solid advice for house buying - finance?


I'd appreciate some advice on my home buying situation and options.

I already own a home in Bethany Beach Delaware, that I use for VRBO, and do pretty okay.

If I'd like to get a $1100,000 loan from Chase, what should I consider for a top shelf home?
With 600,000 down, At 4%, that makes the monthly $3,050 for the $500,000 interest portion, which I can totally handle for 30 years.
What should I know about getting $600,000 for the principal options? Must I just wait until I accumulate that? Ask Luca Brasi for some assistance?

beavoidSelf EmployedAsked:
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JohnBusiness Consultant (Owner)Commented:
How long will it take you to accumulate $600,000 on your current home.

Let us say waiting is a good option (what I would do). Then 4% for 15 years for $500,000 is $2,875 per month. That strikes me as much more manageable than 30 years (which may easily put you near or into retirement).

I would accumulate down payment first and shorten the amortization period.

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David Johnson, CD, MVPRetiredCommented:
Mortgages are usually renewable every 5 years, interest rates can fluctuate over 30 years. (5 renewals).  I can remember when interest rates ballooned to over 20% which destroyed home ownership for a while.

One also has to consider local taxes, insurance, utilities.  The local economy can be a big influence on the housing market.  We can only hope that the market value increases at a rate faster than the interest rate.

VRBO usage means higher insurance rates and higher mortgage rates (there are also tax implications as it is not your primary residence).  It is always better to put as much down and pay as much as possible to reduce the principle to reduce the cost of borrowing.  You do have to leave yourself a cushion as VRBO is not guaranteed income.

the home that you have in Bethany is that free and clear of any mortgages? You can use your equity there to guarantee part of the mortgage and get a reduced rate.
beavoidSelf EmployedAuthor Commented:
The Bethany home is on a 20 year...I am paying the mortgage, with guest payments helping out with the mortgage and what not.
JohnBusiness Consultant (Owner)Commented:
Thanks and good luck creating equity for a new place. I wish you well.
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