2006-09-03 09:42:00 · 9 answers · asked by Military Texan 1 in Business & Finance ➔ Renting & Real Estate
The driving factor in this equation is rising interest rates. I just opened up a 12-month CD at my bank that gave me a higher yield (5.65%) than my mortgage (5.5%). And rates continue to rise. So you would be smarter to invest the 50K short-term and use it to put down on a house to buy when you find one, which could be a while. You may also be able to negotiate a lower interest rate or fewer points with your lender since you have a sizable down payment. Generally, as rates rise, prices will go down after about a six month buffer.
2006-09-03 10:22:02 · answer #1 · answered by Doe 3 · 1⤊ 0⤋
Put some money on a new house, and pay down on the current one, then rent it out. Residual income that way. You can finance both homes under one loan too, they are Jumbo loans.
This way you know the payments on both homes are being made, and with the rental income it will help pay for the mortgage.
Otherwise sell the current home live in it until it sells, put the saved money in some CD's of something that earns you interest on your dollar for a while; then when the current home does sell, you can put all that money down on the new home.
As for the market bursting....its becoming a buyers market. But real estate isnt going to go out of business! Like the stock market it will go up and down, but you will never loose money in investing in real estate. You just have to be smart about it. Buy low, sell high....just like Wall Street.
Good luck to you.
2006-09-03 16:58:40 · answer #2 · answered by R.E.Reta 2 · 0⤊ 0⤋
pay it off, do not buy another house. It's the wrong time to buy the market is going down. From this point on, start saving for the down payment of the next one. In about 5-10 years when the market starts back up, you will be in a good position to sell your house and buy a much better one that is appreciating.
2006-09-03 16:48:14 · answer #3 · answered by waplambadoobatawhopbamboo 5 · 0⤊ 0⤋
I would pay off the house. Interests of $50,000 may not be large enough to provide good tax benefits.
If you have positive cash flow, another option is to put your money in other investment, to diversify your porfolio.
Buying another house may not be a good idea now. The housing market in the U.S. continues to slump.
http://money.cnn.com/2006/08/24/news/economy/newhomes/index.htm
http://money.cnn.com/2006/08/23/news/economy/homesales/index.htm
2006-09-04 05:20:19 · answer #4 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
Don't pay off your house, take 25k and put it towards a new home and pay 10k towards your old home and keep the rest to pay off your mortgage. This will have your credit score up the roof. banks will kill to loan you money.
2006-09-03 16:45:49 · answer #5 · answered by fire2hot2 2 · 0⤊ 0⤋
Pay off your house. How awesome it is to own something free and clear and owe nothing to no one. Its a freedom so few people enjoy anymore.
Debt sucks!
2006-09-03 16:53:46 · answer #6 · answered by Ang 2 · 0⤊ 0⤋
pay off the house,that way you will not be tempted to go out and buuy something that you really don't need.
2006-09-03 17:17:47 · answer #7 · answered by Anonymous · 0⤊ 0⤋
pay off house sell it then buy anopther
2006-09-03 16:47:10 · answer #8 · answered by rhino_man420 6 · 0⤊ 0⤋
I am just bookmarking this question
2006-09-03 17:00:42 · answer #9 · answered by Sweet Virginia 2 · 0⤊ 0⤋