quote:
Based on Pt. 1, I'm frankly surprised virtually none of the same posters are in here telling you to get a cash-out mortgage on both properties and invest every dime of your liquid assets. I was told only ignorant fools do otherwise.

Too few understand the role individual behavior plays in personal finances. Telling a person to make a finacal decision based solely on the mathmatical outcome is like telling a overweigh person to just eat less, and exercise more. It may be perfectly correct based on the ariithmetic of calories consumed vs calories burned, but it is rarely that simple, or succesful.

This post was edited on 12/22/21 at 7:30 pm

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Posted by gpburdell

ATL

Member since Jun 2015

1425 posts

Posted on 12/23/21 at 1:31 pm to EA6B

quote:
Too few understand the role individual behavior plays in personal finances.

+1

I am of the camp who would rather invest than pay extra on a low mortgage interest mortgage. I understand my risk tolerance and behavior having been through 2 major crashes (2000 and 2007). I don't count 2020 as it recovered so fast where the other two took several years to recover. Though seeing your portfolio drop mid 6 figures is a good gut check lol.

However, when you get a large sum of money that lets you pay off the mortgage entirely that is very different than paying extra to a mortgage for 15-20 years.

My advice to the OP would be to immediately sell the second house and refinance the primary house. Then I'd wait at least a month before making any decisions on the money (alot of people say a year). You could still pay off the house, have a decent chunk left to invest and can max your 401k/Roth IRA/529/HSA going forward.

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