Refinance or not?

[Stuart993]

Though I'd try the PP brain trust with this one.

I'm lucky enough to have no mortgage, a nice feeling, house is worth around $300K.

Over the holidays, in Seattle, we came across a great little houseboat on Lake Union for sale, asking price $179K. Our son's at college in Seattle and we pay a googly amount to his accomodation, so looking into buying the houseboat seemed a good idea. If I start a second mortgage they want a $45K downpayment with an interest rate of approximately 8%.

So, what's the verdict, new mortgage, refinance, or walk away and keep paying rental?

Thanks in advance.

[stomachmonkey]

Not a lot to go on.

What's rent cost and for how much longer?

What other costs? Utilities?

What's maintenance, taxes, mooring/dock fee's, utilities on a house boat?

Borrowing money at 8%? Are you nuts?

I'll lend you the cash at 6.

[Stuart993]

Apartment rent $900/month for a dump, time frame; 2 more years at school then he'll probably stay there, he likes it for some reason.
Utilities, are included in the slip fees.
Maintenance, anyone's guess but it's had a full survey/appraisal. Taxes $1100/annum. Slip fees $473/month.
8% interest is just a fact here.
Thanks, I'll let you know.

[pavulon]

I don't understand how 8% can be stuffed down anyone's throat right now...not even if your credit smells like feet. All the same, 8% and ~$600/month more up in smoke (fees, taxes) then insurance on a floater would kill it quickly for me...but I don't get the houseboat thing on principle alone either. I think you're smart for looking at buying as opposed to paying crazy rent, but I'd hope a fella could do better on something else.

[dhoward]

You should be able to come up with a boat mortgage for under 5%.
Not a second on your home...

[Stuart993]

8%, crazy indeed. When I asked the realtor to name another loan company he replied "They are the only show in town", I checked, he was correct.

[dhoward]

Google boat mortgage.

[Stuart993]

Originally Posted by pavulon

...then insurance on a floater would kill it quickly for me....

$80/month

[racer]

What happens when a drunk friend falls off and downs? I don't get the housboat thing either. I'd avoid it.

How long will you son be in college? I hope only a few years, then he's on his own paying his own way? Whats the resale value of then "older" houseboat? Would you be "underwater" down the road?

[Stuart993]

Thanks all.

racar: not sure about the drunk friend issue, must admit never though of that.
He pays a good deal for himself now but will be on his own dollar when he finishes.
I think the resale value's not bad, not great, but not bad.

We're walking away from this.