I have watched thousands of videos so far in the topic of "Buying a house". However, none of them brought up this topic so clearly, so detailed, so convincingly, so ........... . Thanks a billion to you for talking about this specific topic and doing it very well!! I subscribe very very rarely..if any, but because of this very useful and successful video that you made, I am subscribing to you now. Congratulations for explaining so well ...writing the numbers on the screen, comparing things, ....
Folks with a paid off home as a majority do not take out new mortgages ever after the original is paid off. I would pay off the new home as soon as possible.
Agreed. At that mortage interest, just put the $400K to the $420K house purchase. The remaining $20K can also be paid off IF there's enough liquid assets available that are both earning less than that mortage rate AND available without dropping emergency funds below acceptable levels. If not, mortgage the $20K with the shortest term feasible (based on rate and payment). My mortgage is 2.5% APR, so it makes no sense to pay it off since even my HYSA are earning more than double that. Even when the HYSA rates go down, long-term CDs will still likely beat that for the foreseeable future. Same for my existing car notes (2.74% APR); no need to pay off earlier.
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I have watched thousands of videos so far in the topic of "Buying a house". However, none of them brought up this topic so clearly, so detailed, so convincingly, so ........... . Thanks a billion to you for talking about this specific topic and doing it very well!! I subscribe very very rarely..if any, but because of this very useful and successful video that you made, I am subscribing to you now. Congratulations for explaining so well ...writing the numbers on the screen, comparing things, ....
Folks with a paid off home as a majority do not take out new mortgages ever after the original is paid off. I would pay off the new home as soon as possible.
Get a 1st lean HELOC money is free to go in and out, gives you built in emergency fund! Park your paycheck in the HELOC
Agreed. At that mortage interest, just put the $400K to the $420K house purchase. The remaining $20K can also be paid off IF there's enough liquid assets available that are both earning less than that mortage rate AND available without dropping emergency funds below acceptable levels. If not, mortgage the $20K with the shortest term feasible (based on rate and payment).
My mortgage is 2.5% APR, so it makes no sense to pay it off since even my HYSA are earning more than double that. Even when the HYSA rates go down, long-term CDs will still likely beat that for the foreseeable future. Same for my existing car notes (2.74% APR); no need to pay off earlier.