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Upgrading my home, whats the best investment route?

Let's say for example, you're living in a house worth about 180k with zero owing on the mortgage. You have zero debt. You want to take on a new mortgage and move to a house that's about 400k. We can get a 10 year mortgage at 3.89% or 5 year at 3.29% What makes the most sense? 1) Put the entire 180k down? 2) Put down 130k down, keep 50k aside for upgrades, repairs and things you want to fix (older house). 3) Put 100k down, invest 75k or so into a monthly income fund. Or none of the above? I realize tax implications with investments - just curious if there are opinions or suggestions? by jaredj_663_277 from Minneaoplis, Minnesota. May 14th 2012 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,620 contributions

What makes sense depends on you. Some people like having no mortgage. Some people like keeping all the cash, as "cash is king", and others like the idea of some sort of mortgage to have a tax write off and keep cash in the bank. Personally, I'd put 20% down and take a mortgage. Consult a tax adviser and financial planner - then do what feels best for you and your family. If you need help, I am right here in town. Visit my web site at www.JoeMetzler.com

May 14th 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,144 contributions

With rates at historic lows right now, it makes sense to borrow as much as you can... how you choose to pay your loan back is really up to your preferences and comfort level... having a competent loan officer is key to understanding all your options, so The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

May 14th 2012
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Dan Eveland (daneveland)
#20 ranked lender in Minnesota - 15 contributions

Money is cheap, keep it in your pocket. Dan Eveland 763-746-9919 WhatIsYourAddress.com

May 14th 2012
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Ken Graczak - NMLS 184394 (KenGraczak)
#29 ranked lender in Minnesota - 21 contributions

I like Dan's advice. I have clients with their homes paid off coming to me looking to take cash out. Rates are low, so money is cheap right now.

May 14th 2012
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