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      11-23-2020, 08:46 AM   #7

Drives: BMW
Join Date: Feb 2012
Location: USA

iTrader: (1)

It really is simple as the OP outlined, but as others have noted there may be better (cheaper, safer) alternatives.

One is to do a cash out refi on your existing house. I’m guessing 2.5% 30 year term. Low monthly payments and you can pay it off when convenient or when your house sells.

Another is to do the construction loan route, which allows you to have “permanent” financing on the new place. Again you can pay it off whenever convenient for you, but the monthly payments from a permanent fixed rate loan are not going to rise and threaten your retirement income.

You might ask a tax advisor if there is an advantage in arranging your new financing on the new house or the old. Tax deduction in your current state of residence vs new state, and establishing residency would be the two issues of concern to me (and I really don’t know the answer).