So my husband and I are looking to inherit around 500k, give it take (or as much as 700k depending on how much the estate property sells). The assets are in a trust and will be divided into four trusts (one for us and the three other trusts to the three other heirs).
My first inclination was to pay off our debts, but we don’t have CC debts... it’s just my school loans (about 60k... been paying them for 15 years, about $500/month with no end in sight) and then we thought we would pay off our mortgage, which is about 200k (interest rate on mortgage is about 3.5%). We are desperately needing a new car so we also intended on buying a car, nothing fancy, maybe even a low miles, preowned car.
We also own a condo that we rent... we have a mortgage of about 90k on it (the condo values around $135k)... the rent we take in pays the mortgage and that is it. Not sure if we should pay off the condo because of the tax implications. We are thinking of refinancing with a 30 year loan since I’ve never refinanced and still have my original interest rate of 6.5% (high by today’s standards).
Looking for some ideas. If we pay off everything above (except the condo- we’re not sure what to do here), we’ll have some money to put into college funds for our kids and some savings as well.
Any suggestions as to a better way to use this money? I was told that paying off the mortgage (on our primary) might not be the best idea, but I’m not sure why?
Thanks for reading and any advice is appreciated.
Submitted March 20, 2019 at 09:41AM by cmb9221 https://ift.tt/2Hxbrxc
