I have $50k to spend, should I pay off my house?
12-02-2004, 10:06 AM
#1
Work safe avatar bish :D
Thread Starter
Join Date: Mar 2002
Location: Avon Park/Gainesville FL
Age: 41
Posts: 3,056
Likes: 0
Received 0 Likes
on
0 Posts
I have $50k to spend, should I pay off my house?
My parents just sold their house in Ecuador and just paid off about 28k in debt and are looking to pay off the house so their credit gets better.
We are looking to move to Gainesville since Im up here studying and my brothers start next year. The problem is that my parents dont have great credit, hence the 28k in debt. Would paying off the house and then selling it in April be a good idea or should the save the money for a down payment on our new house?
We have been looking to build a house in Gainesville, but i dont know if we would be able to get a second mortage. Any suggestions or comments are greatly appreciated and the best suggestion gets a
We are looking to move to Gainesville since Im up here studying and my brothers start next year. The problem is that my parents dont have great credit, hence the 28k in debt. Would paying off the house and then selling it in April be a good idea or should the save the money for a down payment on our new house?
We have been looking to build a house in Gainesville, but i dont know if we would be able to get a second mortage. Any suggestions or comments are greatly appreciated and the best suggestion gets a
12-02-2004, 10:28 AM
#3
Outnumbered at home
Little confused here
What house are you talking about? The parents sold theirs so that is paid for. They already paid the debt off so that is a great first step.
More details
But paying off debt is great step if they already have done it.
What house are you talking about? The parents sold theirs so that is paid for. They already paid the debt off so that is a great first step.
More details
But paying off debt is great step if they already have done it.
12-02-2004, 10:45 AM
#5
Senior Moderator
Join Date: Jan 2001
Location: Western New York
Age: 64
Posts: 25,135
Received 7,100 Likes
on
3,608 Posts
Why would you pay off your house when the mortgage rates are so low??? This makes no sense. Instead, they must have a lot of consumer debt unrelated to a house (credit cards, store charges, etc.). Go to suzeorman.com and see what she thinks.
12-02-2004, 10:47 AM
#6
Work safe avatar bish :D
Thread Starter
Join Date: Mar 2002
Location: Avon Park/Gainesville FL
Age: 41
Posts: 3,056
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by 95gt
Little confused here
What house are you talking about? The parents sold theirs so that is paid for. They already paid the debt off so that is a great first step.
More details
But paying off debt is great step if they already have done it.
What house are you talking about? The parents sold theirs so that is paid for. They already paid the debt off so that is a great first step.
More details
But paying off debt is great step if they already have done it.
they sold their house in Ecuador, but we are thinking about selling our house in FL, we only owe about 50k.
We were thinking about paying it off so their credit would get better and then selling the house in april and move to Gainesville
12-02-2004, 10:51 AM
#7
Outnumbered at home
Originally Posted by nandowong
they sold their house in Ecuador, but we are thinking about selling our house in FL, we only owe about 50k.
We were thinking about paying it off so their credit would get better and then selling the house in april and move to Gainesville
We were thinking about paying it off so their credit would get better and then selling the house in april and move to Gainesville
I would say pay off the house, of course this depends on the Gainesville area housing market. With the incredible increase in housing prices right now your rate of return in the home will probably be better than most things you can find in the market.
Plus it is a safe investment (pretty doubtful your home will go down in value right now). By putting it into the home they increase their net worth and therefore their downpayment amount once they sell their current house. They will most likely have to have a "purchase contingent on the sale of their current home" because of their bad credit but they should get a nice return on their money.
Plus there is something to be said for not having a mortgage payment. piece of mind is pretty nice to have
Trending Topics
12-02-2004, 10:55 AM
#8
Banned
I suppose it depends if you can get a better return on the money by investing it in other ways rather than pay off your house mortgage - so you have to look at your mortgage rate and see if you can do any better. It gets more complex than that, but that is a starting place. Perhaps you can pay down part of the mortgage and invest the other portion in moderate risk investments?
12-02-2004, 11:13 AM
#9
Homeless
Join Date: Feb 2003
Location: Northern DEL-A-Where?
Age: 51
Posts: 9,210
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by nandowong
We were thinking about paying it off so their credit would get better and then selling the house in april and move to Gainesville
Better to invest in a CD or mutual fund than payoff debt. Especially since savings rates right now are so high.
12-02-2004, 11:18 AM
#10
Banned
Originally Posted by chris3240929
Credit is better if you maintain quality payments...not paying things off.
Better to invest in a CD or mutual fund than payoff debt. Especially since savings rates right now are so high.
Better to invest in a CD or mutual fund than payoff debt. Especially since savings rates right now are so high.
12-02-2004, 12:16 PM
#11
Homeless
Join Date: Feb 2003
Location: Northern DEL-A-Where?
Age: 51
Posts: 9,210
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Adam_Schwartz
Depends on what kind of debt we are talking about. If you have large amounts of credit card debt and are paying 18%+ in interest, then by all means pay off that debt. Hardly any investments give those kinds of returns, so you are essentially making money by paying off credit card debt.
if they have such horrible terms/rates...by all means...wipe it clean...
12-02-2004, 12:32 PM
#12
Work safe avatar bish :D
Thread Starter
Join Date: Mar 2002
Location: Avon Park/Gainesville FL
Age: 41
Posts: 3,056
Likes: 0
Received 0 Likes
on
0 Posts
they already wiped about 25k in credit card etc. debt, but the problem is that if we try to apply for a loan now we probably wont get approved to get two homes. But by paying ours off we have a better chance or would paying a large downpayment be better?
12-02-2004, 12:43 PM
#13
Homeless
Join Date: Feb 2003
Location: Northern DEL-A-Where?
Age: 51
Posts: 9,210
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by nandowong
they already wiped about 25k in credit card etc. debt, but the problem is that if we try to apply for a loan now we probably wont get approved to get two homes. But by paying ours off we have a better chance or would paying a large downpayment be better?
You MAY be able to get both homes...the only way you'll know is if you talk to your bank, apply, etc.
Chances would seem fairly good if you're going to rent one home out though...
12-02-2004, 01:04 PM
#15
paying off the 28k in debt was a good start.
here's what i would do:
- keep your current home.
- use the 50k you have and buy a new home in gainesville
- once your parents move to gainseville, rent out your current home
- with the rent income continue to pay off the mortgage on your current home
- then your parents will just pay for the mortgage on the new home
basically you'll have someone else pay for your mortgage.
here's what i would do:
- keep your current home.
- use the 50k you have and buy a new home in gainesville
- once your parents move to gainseville, rent out your current home
- with the rent income continue to pay off the mortgage on your current home
- then your parents will just pay for the mortgage on the new home
basically you'll have someone else pay for your mortgage.
Thread
Thread Starter
Forum
Replies
Last Post
4drviper
3G TL Tires, Wheels & Suspension
2
09-23-2015 07:42 PM
