We are building a new house next year and have about 35% of the estimated cost saved and conservatively invested with our advisor at Edward Jones.
Construction will start late Spring/Early Summer and we hope to move in before Christmas next year.
We will continue to save all of next year and expect to have 45% of the estimated mortgage saved by close.
We also have about $130,000 in equity on our current house.
In total I think we will have 65% of the new house value available at close assuming our home sells for what Zillow says.
Originally, we intended to put all of the “House Fund” and sale proceeds against the mortgage at close.
Now, with the record low interest rates I’m not so sure tying up that much cash makes sense and I’m thinking about just putting 20% down to avoid PMI and putting the rest to work in the stock market.
We have to purchase the land in January which is more than 20% but we were told we refi that money back out at close if we wanted.
What would Reddit do? Dave Ramsey this thing and pay down the house or chance it with the stock market outperforming sub 3% interest rates.
Submitted December 27, 2020 at 07:15PM by WeSellStuffonAmazon https://ift.tt/3pvyDhg
