Hi,
I have a house, free and clear. It's worth $220,000.
I just bought a new house, I close in 30 days. The new house cost me $259,000 @ 3.75 % interest for 30 years, no down payment.
I have googled and searched through the forums and have read a ton about the debate of paying down the mortgage vs investing.
Here's my take:
- Dump the $220,000 from house #1 onto the new property then race to pay off the remainder.
- Dump the $220,000 from house #1 into an investment which should return more than the 3.75% interest rate.
- Or perhaps a hybrid approach?
My basic question is, does $220,000 raw cash have the monthly staying power to cover the mortgage payment, if invested into something such as Betterment, Acorns, Hedgeable etc?? I'm not quite confident of my usage or choice of an investment backtesting calculator to determine my monthly return on my investment. Or am I totally missing the boat here, and should be doing something more intelligent?
For background, I have a maxed out 401k, ROTH, and an HSA.
I also have robo-accounts in Betterment, Acorns, USAA and Hedgeable.
I really appreciate it,
thank you