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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: RVAMustache on March 07, 2013, 02:29:21 PM

Title: Short Term Stashing
Post by: RVAMustache on March 07, 2013, 02:29:21 PM
The wife and I are saving up for a 20% down payment on a home and we're able to stash around 2500 monthly.  We currently own a home with a 2.625% interest rate.  We're not under water and would likely break even at this point after closing costs and all thanks to buying at or close to the peak of home prices.   We have 14000 in student loan debt (1/2 at 3.8% and 1/2 at 1.8%).  We're trying to figure out the best option for our funds over the short term before applying them to the down payment.  Pay down mortgage, payoff high interest student loans, short term investments or some other option I'm not aware of.  Thanks for any advice offered.

- RVAStashing
Title: Re: Short Term Stashing
Post by: RVAMustache on March 08, 2013, 06:37:13 AM
Thanks for the feedback - to answer your questions

Do you have any credit card debt? car loans?
None at this point - just sold a non-mustachian vehicle and purchased a used Elantra Touring and was able to pay in cash.

May I ask why you are moving?  What is wrong with the current house?  I dont know much about real estate, but it sounds like your going to be selling for a loss or just braking even?  Is that a smart thing to do? Could you rent it out for a few years in hope of the market becoming better then sell?  Or perhaps just continue to live in it???  I look at my house as an investment, and very very rarley have I ever sold or cashed in any of my investments for a loss (Damn you Nortel!!!)  so I am puzzled why you want to sell now...

I've toyed with the idea of renting it but I don't believe it would serve as a good rental home.  We paid 296 and it's currently worth about 270.  We still owe about 250.  It's in a planned neighborhood that charges 200 a quarter in neighborhood association fees which provides a lot of benefits if you're the owner however as a rental I don't think I'd want those fees as they would hurt the bottom line.