If I get enough, would it be best to pay off my home, put it in savings and use it later as a down payment when I move, or invest it?
2007-05-15 03:03:37 · 9 answers · asked by Danathefly 2 in Business & Finance ➔ Renting & Real Estate
pay off your home and then invest. Vanguard total stock market index is the best you don't have to watch it really and my stock went up 14.29% in one year.
2007-05-15 03:17:19 · answer #1 · answered by kid with an idea... 2 · 0⤊ 1⤋
What you spend the money on is up to you ... but if you are 'young' (35 or under) I think that you should 'invest' the money, so that you'll get some 'return' that you can 're-invest' or 'spend' as you need it. If you are over 35, then you should look into some 'rental property' and compare that with the return on an investment to decide what to do. As far as your own house, you should 'pay that off' only if to do so would be 'better' for you ... and it could actually 'damage' your credit rating and you would probably have to pay a huge 'early payment fee' that would make it 'less' of a good investment than you would like.
2007-05-15 10:15:13 · answer #2 · answered by Kris L 7 · 0⤊ 0⤋
If you can get a higher rate of return on an investment, keep the mortgage and invest the proceeds from the sale. Over the long term, housing doesn't beat inflation by much and isn't a great investment. The stock market however has returned around 7% per annum for over a century. If your mortgage is less than 7%, keep it. If it's more than 7%, buy down the rate on a re-fi and invest the balance.
2007-05-15 10:17:36 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Depends what your interest rate on your house is and what type of Return you could get another investment. Loans on a home are generally not the first thing you should dump your money into. If you have other outstanding debts like auto loans or unsecured debts like credit cards you may be better off by paying those. Depending on the risk you want to take on, you could either play it safe with mutual funds or certain REITs are doing well. I personally would not pay my home off instead I would find either property or stocks and bonds to invest in.
If it is a large sum of money I definitely wouldn't place it in savings as you won't get the return that kind of money can offer. At the very least I would find CD's that pay a decent interest rate.
2007-05-15 10:19:03 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Pay your mortgage ONLY if your interest rate is larger than what your return will be if you invest. Go on line to investment calculators and plug in some numbers, you will be surprised at the amount of money you will have if you invest, your mortgage interest is a good thing to have since it is a write off at tax time
2007-05-15 10:14:31 · answer #5 · answered by Tutto Bene 4 · 1⤊ 1⤋
Keep your own mortgage active for income tax advantages and put your mother's house proceeds into a Ira account and save it for your retirement. You'll be glad you did when you reach retirement age and the struggles you are facing today will be long over when you can sit back and relax with your wind fall.
2007-05-15 10:18:59 · answer #6 · answered by thomas m 5 · 1⤊ 0⤋
I would pay off my house. And if it was not enough, I would still drop a large chunk on it and maybe refinance to get a shorter term and lower monthly payment - unless you already have a great deal on your mortgage, in which case you can still drop a big chunk on it and pay it off early.
2007-05-15 10:13:22 · answer #7 · answered by Anonymous · 0⤊ 2⤋
i would say that the best thing to do would be to pay off your house and then when u do decide to move you can sell your house and maybe get more money and get something cheaper and the extra money you have from selling your house u can invest it
2007-05-15 10:09:55 · answer #8 · answered by doo o 2 · 1⤊ 1⤋
pay your mortgage
2007-05-15 10:09:58 · answer #9 · answered by Grand pa 7 · 0⤊ 1⤋