Isaac-1
Well-known member
I know I am asking this on an RV forum, but I would like your thoughts, I am trying to decide what the smartest move is given the current inflationary market. I have tried searching for information online, but it seems almost all of it was written before this historic inflation hit.
We sold our house last summer to the business next door for what I consider a good price, in a somewhat non-traditional sale, the short version, we are owner financing the sale over 3 years, with 3 lump sump payments, but get to stay in the house until they finish paying. We have used some of the initial payment as a down payment on a new house, and are currently doing some remodeling on it before moving in. Total cost on the new house plus remodeling, etc. will be about equal to the sale of our old / current house.
The new house is financed over 30 years at 3.5% APR fixed rate.
Given the current inflation, and that the average 30 year mortgage rate has risen to 6.5% APR, is it smarter to use the money coming in from the sale of the old house to pay off the new one, or is it better to invest it in a fairly safe investment and take advantage of the current market conditions?
Ike
p.s. We have enough assets / other income that we could take a 100% loss on this and still not loose the new house, though that would not be preferable.
We sold our house last summer to the business next door for what I consider a good price, in a somewhat non-traditional sale, the short version, we are owner financing the sale over 3 years, with 3 lump sump payments, but get to stay in the house until they finish paying. We have used some of the initial payment as a down payment on a new house, and are currently doing some remodeling on it before moving in. Total cost on the new house plus remodeling, etc. will be about equal to the sale of our old / current house.
The new house is financed over 30 years at 3.5% APR fixed rate.
Given the current inflation, and that the average 30 year mortgage rate has risen to 6.5% APR, is it smarter to use the money coming in from the sale of the old house to pay off the new one, or is it better to invest it in a fairly safe investment and take advantage of the current market conditions?
Ike
p.s. We have enough assets / other income that we could take a 100% loss on this and still not loose the new house, though that would not be preferable.