I know that there are 100+ posts on BP asking this same question but i want to get more specific. I am a 29 year old husband and father trying to get into REI. I will list off my financial situation below so you know more about me.
- Annual income about $85K (wide is full time mom which is important to us).
- Homeowner since 2010 - FHA loan of $143K taken with 3.5% down at 5%. Made biweekly payments since. Now have $60K to $65K in equity. Plan to move in the next two years.
- Paying down our student loans (started at $120K) beyond min payments with bonuses and tax returns since graduating. Should have them all paid off in the next year or two. Current employer is covering my grad school which I will be done with in 2017.
- Our cars were bought used and will both be paid off next year (payment is $580 per month for both). We plan on keeping them once paid off.
- Monthly revolving credit card debt. We use our credit cards for most expenses and i pay the full balance each month. We stick to strict budget i laid out for us.
- Both of our credit is in the 760s. Debt to income is a little high due to student loans but drastically improving annually.
- Paid for our own wedding and honey moon in 2010 delaying extra progress on other debts for a year or so.
My question is... how and when should I get started. I would like to rent our house out when we move rather then selling. I also am looking at several foreclosures in our same neighborhood right now. We are contemplating refinancing our house to reduce payments and lower the interest rates.
How can I get started now with minimum to put down? Should I wait a few more years and miss the low rate bubble we are in? Would you recommend refinancing current home if we are going to move in the next few years? Can I use my equity as a down payment on something else without selling?
I am pretty responsible with my money and only don't have much to play with because I am putting it all towards getting out of high interest debt. Any guidance would be greatly appreciated.
