Advice Needed

[Fred Durst]

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Here is my situation. Currently in SoCal and not sure where I am headed next year. Have a wife and new baby and the wife will be a stay at home mom. We have a home with about $150,000 in equity. So here are my questions:

1. If I get accepted close by and don't need to relocate how can I get extra money to cover the family expenses and keep the home?

2. Not really a question but I am not sure if selling and getting an apartment is a greaty idea since apartments in the area are only 200 less a month than my house payment.

3. If I have to relocate should I try and buy a home or condo that I can pay cash for and not have a house payment?

4. I have seen that some people have gotten their families on medicaire for insurance while they are in medical school. Can you own a home and get medicaire?

 

[mpp]

1. You should qualify for at least some student financial aid which is the cheapest money going. A mortgage (2nd if needed) against the equity in your home should give you enough for living expenses and then some.

2. Selling is probably not a good idea if you like your home. But using the equity in your home to it's full advantage can sure help out.

3. No. I think the best idea would be to buy a house with the minimum amount of down payment that you can to make your payments reasonable (e.g., putting down 20% to opt out of PMI if you can) and then using any leftover money for expenses. The first place to borrow is available student loans, then against your home. Borrow from other sources as a last resort.

4. Don't know much about medicare except that it is for people over the age of 65, younger people with permanent disabilities, or people with end-stage renal failure. There may be state run programs (e.g., Medicaid) that is for people with low incomes. You'd have to check the Medi-Cal website.