Author Topic: Lump sum windfall, paying down (off) mortgage or investing. Debt free. Newbie  (Read 670 times)

Ratrem133

  • 5 O'Clock Shadow
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Hello! I am completely new to this forum. We are 98% sure on cashing out a real estate investment property. We will have a nice payout. We are considering paying down our primary house mortgage. Our primary house is a two family home,we live in one unit and rent out the other to family. Current mortgage 350K left at 3.95%. We likely would recast to 150K same interest rate. Payment around $750 + $720 taxes, we receive $1100/month rent (way under market). We are in a VHCOL that has seen great leaps in real estate and continues to Trend upwards. Current market value on our 2 family is 1.7m.

We would have approximately 100-150K left over after paying down mortgage. We would invest although we are so new to this I am not sure in what vehicle. Paying down our mortgage would allow us to max out both roths easily and leave us with a nice monthly snowball to toss on top of our newly investment money, or a 403(b)/457 plan. We live a frugal lifestyle, have 3 young children.

Suggestions? Awful idea to pay down mortgage? Invest it all? Pay off the mortgage completely? Should we do a 180 and keep the rental (market is bonkers right now, but the area it is in still has lots of growth potential)? So many questions, please help a newbie out.

MDM

  • Walrus Stache
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  • Posts: 8966
See Frequently Asked Questions under "Investing."

See also Investment Order.

Welcome to the forum!  Posts above might allow you to answer yourself, but if not just post again with follow-up questions.