Hi all
I am stationed overseas, and am renting out our house in the states. We do not plan to move back into the house, as our family has grown. The rental and property managemeng is going well.
I just recieved my annual bonus, and am looking for some hive-mind thoughts on my next step. Here's the situation:
- Bonus (after tax) 58K
- Mortgage 1 (remaining) 96K 5%
- Heloc (remaining ) 23 K 5.25%
My options:
1: Invest all 58K either all at once or over the next year, (knowing we are most likely heading for a downturn). I have an about 20yr window until I plan to retire
2: Pay off my Heloc and invest the rest
3: Pay off Heloc and part of mortgage
with addendum question: should I try to refinance the two mortgages into one with a (slightly) lower rate?
Other data: 401K is maxed for both me and my spouse. Together we have approx 1M in retirement savings and 70K in emergency fund.
I typically lean towards keeping the mortgages for tax implications and for the fact that typically the market will beat the mortgage interest, but with both the coming (I think) downturn and the relatively high interest rates I'm torn. Any additional thoughts or advice would be appreciated!
Thanks
Submitted December 07, 2018 at 06:37AM by Meesind https://ift.tt/2Qiesqg
