I wanted to give you all an update. Since this money is separate from money set aside for retirement living expenses and I am basically just transferring equity from 2 homes into one at the end of the day, I am leaning toward paying off the house and not having to bet on what the market might bring. We will have quite a comfortable budget with the funds left and I am fine with that, as long as I don't go into those funds for the house.
My first quote from the bank for financing this house that is 12 months out on build time includes appraisal fees (2) construction inspections, construction management fee, title insurance fee of $3,000 alone!, origination fee $4000, and yea, I can buy the loan down to 3.65% for $5745. Total cost from the bank $16,957 and this lender works with the manufacturer on a regular basis, so knows the routine.
Also found out there is a $7,500 cash discount from the manufacturer. Now we're up to $24,457 in costs.
My first basement quote is going to come in around $100,000 for a 2100 sq. ft home. Twice the amount of what I was thinking. That is just concrete hole plumbed for a bathroom and a small walkout. Of course the price of concrete is through the roof right now, just like lumber was.
Sitting this inning out until Spring would allow me to sell my house, move and go in with all cash, hoping falling concrete prices and lumber will start being reflected in the pricing. I am not sure I can see paying $24,457 in extra costs to buy into what is hopefully the top of the market, finance, move, sell and then come in and pay off the loan in another year. What I am finding is between the costs of financing the home and now the price of concrete, is going to push me into those retirement funds, and that is the part I am not willing to budge on.