🏠 💰 Should I pay down my high-interest mortgage or save the house sale proceeds?
🏠 💰 Should I pay down my high-interest mortgage or save the house sale proceeds?
After moving to a different state and selling my old house, I’m undecided on how best to use the proceeds from the sale. I purchased a condo when I moved - I could put the proceeds on that mortgage and lower my payments by about $900/mon + get rid of the PMI.
Alternately, I can leave the proceeds in an online savings acct like Ally that earns 3.5% compounded daily - I’d be able to fully retain the proceeds and offset my condo mortgage by abt $450/month using the interest earned.
What would you do? My condo mortgage is high with a 6.625% rate so I definitely need to make it more affordable. Is there a third option that’s worth considering? 🤔
Thanks for any advice and tips! 😇
After moving to a different state and selling my old house, I’m undecided on how best to use the proceeds from the sale. I purchased a condo when I moved - I could put the proceeds on that mortgage and lower my payments by about $900/mon + get rid of the PMI.
Alternately, I can leave the proceeds in an online savings acct like Ally that earns 3.5% compounded daily - I’d be able to fully retain the proceeds and offset my condo mortgage by abt $450/month using the interest earned.
What would you do? My condo mortgage is high with a 6.625% rate so I definitely need to make it more affordable. Is there a third option that’s worth considering? 🤔
Thanks for any advice and tips! 😇
1 Answer
Well that's a great question if I say so myself. I actually wrote it up in a View here: https://finfam.app/mahmoud/views/should-i-pay-down-my-mortgage-or-investsave-a-lump-sum
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