We're moving and considering our options on what to do. We have a total of about 30K in debts from a student loan, a home equity loan, and an auto loan. We also have a home where we still owe the same amount as when we first purchased it, but the value of the house has increased by at least 50%. We both have good jobs and are able to pay down the debt that we owe at a rate of about 5-7K/yr. We are considering two options for our future finances. Which one is better?
A) If we sell the house, we could sell it for enough of a profit where we could pay off our 30K in debts, and still have enough money to put down 10% on a new house. The money that we are using to pay off debt would now become additional income for us. So we could be entirely debt free.
B) Keeping the house and opening it up for a rental property. We would have to continue to pay off our debt, but at a faster rate b/c we have a new source of income. This ~$500/mo could be long term after our debt is gone.
A or B?
2006-09-13
07:14:40
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9 answers
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asked by
Bert S
1