Pay off current home mortgage or use equity for new home?

[Robert Czekalinski]

Hello, I need some advice from "smart" money people on what to do in my situation... It's a good option that I have I just want to do the right thing.. I am currently 34 yr old live in Fort Myers FL and bought a house in '10 for $72k lol... The house is now worth $160. My current mortgage is $612/mo including taxes/insurance.. I can have it paid off in full in about 8.5 years. It will need a new roof and new ac in 3-5 years. 

My second option is to sell my home and use the equity I make down payment. The home I'm looking at is $260k. It is brand new construction, twice the size of my current home. The mortgage on this place would go up to $1250 and it would b a 30yr mortgage.

So my question is, what is the financially correct thing to do in this situation? Should I just stay in my current place with the low mortgage or cash in on the equity and buy a brand new place? I cannot rent out my home as I don't make enough $ to qualify for 2 loans, I am a teacher. Please give me your advice and opinions on what the smart decision would be in this case. Thank you!

Robert

[Elena Sweeney]

Do you like your current property? Sounds like you are looking for more sq footage. It is a very smart decision to cash on the equity you have in your current home by selling it and putting the money in your  next home, except buying another house with equity in it, like a foreclosure that might not even need much work. New construction is a great option if you will live in this house forever, but if you are planing a smart investment, look for a house with potential equity in it. I am knowledgeable in Fort Myers real estate market, let me know if you have any questions.