Question...
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Question...
OK, here is the deal. My wife and I are selling our house for $320K. We bought it in June 2004 for $230K. Since we had an 80-20 interest only, 5-1 ARM, we basically owe $230K on our townhouse in MD.
We both have new jobs in Jacksonville, FL.
I will be a GS-12 working for the E-6B program in Cecil Field, while my wife will be working at NAS Jacksonville as a Navy Nurse. We won't have to pay capital gains taxes because we both have job-related moves.
My wife will be getting out of the Navy in May of 2008 so that we can start to have kids.
Her Civic will be paid off by then, and my Accord will be paid off a little more than 3 months after May of 2008. We are investing about $1400/month with First Command, and have been doing so since June of 2004. We will continue to do so until we need that money for our children's future. We currently have over $22K invested with Franklin, Pioneer, and Fidelity. This is on top of the 7% of my gross pay that I am investing in TSP (almost $14K as of today).
When we buy a house in Jacksonville, we want to have as low of a monthly payment as possible. On a $200K house, we could have as much as $320K - $230K - $6450 (flat seller's agent fee) - 3% * $320K (potential buyer's agent commission) - $10K (for furniture for new house) + $6K (savings) - $9K (closing costs on new house) = $61K to put down on our next house.
Our financial advisor told us to only put down 20% and invest the rest in First Command. He does not get a cut of that because we already paid him his "commission." First Command had a special deal that if you pay a 50% commission for the first 12 months, you don't have to pay one for the rest of your life. It encourages you to invest long term.
Should we throw everything we have ($61K) at the house down payment, or should we only put down 20% and invest the rest?
We both have new jobs in Jacksonville, FL.
I will be a GS-12 working for the E-6B program in Cecil Field, while my wife will be working at NAS Jacksonville as a Navy Nurse. We won't have to pay capital gains taxes because we both have job-related moves.My wife will be getting out of the Navy in May of 2008 so that we can start to have kids.
Her Civic will be paid off by then, and my Accord will be paid off a little more than 3 months after May of 2008. We are investing about $1400/month with First Command, and have been doing so since June of 2004. We will continue to do so until we need that money for our children's future. We currently have over $22K invested with Franklin, Pioneer, and Fidelity. This is on top of the 7% of my gross pay that I am investing in TSP (almost $14K as of today).When we buy a house in Jacksonville, we want to have as low of a monthly payment as possible. On a $200K house, we could have as much as $320K - $230K - $6450 (flat seller's agent fee) - 3% * $320K (potential buyer's agent commission) - $10K (for furniture for new house) + $6K (savings) - $9K (closing costs on new house) = $61K to put down on our next house.
Our financial advisor told us to only put down 20% and invest the rest in First Command. He does not get a cut of that because we already paid him his "commission." First Command had a special deal that if you pay a 50% commission for the first 12 months, you don't have to pay one for the rest of your life. It encourages you to invest long term.
Should we throw everything we have ($61K) at the house down payment, or should we only put down 20% and invest the rest?
Last edited by gatrhumpy; Apr 6, 2006 at 01:15 PM.
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Joined: Jan 2001
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From: Jersey
With current mortgage rates still pretty low I would put the 20% down and invest the rest in reasonably safe investments. That's what I did last fall and so far it has paid off. Plus you will have more money that is reasonably liquid in case you end up needing it for something.
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