Should we sell our house and buy another house?

We bought our current house seven years ago. We are thinking of upgrading to a newer house. With our current house we could probably get $240,000.(I am low balling the price big time!). We only have $155,000 for our mortgage. We would probably pay closing costs, real estate agent fees, and moving costs out of pocket. My husband makes a little over $100,000 a year. We have no debt except the mortgage. We also invested our own savings into the house, about $27,000 worth, for home improvements. If you averaged out the money we put into our current house for improvements ($27,000) over the past seven years we lived here, we could have afforded a mortgage that was at least 350 more per month more than it currently is. I was looking at houses on the internet that run for about $325,000 to $350,000. Like I said we currently have no other debt, have been putting the highest possible amount we can each year into IRAs, for retirement, put in the max for our 401K, and have been putting money away for the kids college. We also have a lot in savings and drive used cars. (No car payments). I know taxes would go up about $2000 a year more because we would be getting a newer house. What do all of you think? I would rather upgrade now while interests rates are probably as low as they are going to go. I don't want to wait another couple of years and get stuck with a high rate? Is it time to think of selling?

2 months ago - 5 answers