Which property should I finance?

[Cheryl Stevens]

Hello Everyone,

My husband and I live in Maine and want to buy a home in Florida in the $250K-$300K range. It would most likely not be a rental. Our home in Maine is not mortgaged. It would probably appraise for $500-$600K. We also own an investment property in Arlington, VA that is not mortgaged. It is appraised at $750K. Which property should we finance? The new house in Florida, our home in Maine, or our investment property in Virginia? Our credit is good, but we are retired and our income is $4300/month from Arlington, VA rental (gross), $2000/month Social Security, $1100/month pension, and $2000/month from investments (stocks/bonds).

Thanks in advance for your advice.

Cheryl

[Jeff Rabinowitz]

Congratulations. You appear to have many options to raise the funds you seek. A mortgage or equity line on your personal residence is likely to give you the best rates and terms. That would put that home at risk if you could not make payments. That risk seems small in your case but, if it concerns you, rates on non-owner occupied homes are still at historically low rates and you appear to have ample room to borrow what you seek from your rental property.