Hi all - I'd appreciate your comments
I am switching my checking and savings to USAA. By doing so, I'm able to receive a 25000 unsecured loan, repayment 438 a month for 60 months at 2% interest. My plan is to pay off my vehicle loan (5.75% interest per month, $10200 total remaining) and put the rest into a CD paying 4.65% APY.
My question is, is this a smart move? More specifically - because it's an unsecured loan, will it hurt me when I go and apply for a home loan?
I am currently in the process of selling my place in HI and will receive a large sum of money for that property. Which brings me to my second question. I've lived in the condo for 2 of the past five years - the tax officer on post told me that for military, it's 2 out of the past 15 years. Will I pay capital gains on this property if I don't reinvest immediately? I am going to be deployed very soon, and only plan to rent when I pcs, because I don't see the point in buying a place, paying homeowner's insurance, association dues and a mortgage payment when I won't even be there.
On the other hand, if I did buy a place, most likely I'd only have about a 60k loan, as the rest will be paid out of money I made off of the HI place. Initially though, I might have to just put down 5-10% and wait until the HI place closes and frees up the money.
My other option, as I said before is to just rent, and put that large chunk of money into something safe and buy when I return.
I currently have about 60k in savings, although 10k is truly liquid (the rest is in retirement savings, and other mutual funds which I refuse to withdraw money from).
Thanks for the comments
Virginia
I am switching my checking and savings to USAA. By doing so, I'm able to receive a 25000 unsecured loan, repayment 438 a month for 60 months at 2% interest. My plan is to pay off my vehicle loan (5.75% interest per month, $10200 total remaining) and put the rest into a CD paying 4.65% APY.
My question is, is this a smart move? More specifically - because it's an unsecured loan, will it hurt me when I go and apply for a home loan?
I am currently in the process of selling my place in HI and will receive a large sum of money for that property. Which brings me to my second question. I've lived in the condo for 2 of the past five years - the tax officer on post told me that for military, it's 2 out of the past 15 years. Will I pay capital gains on this property if I don't reinvest immediately? I am going to be deployed very soon, and only plan to rent when I pcs, because I don't see the point in buying a place, paying homeowner's insurance, association dues and a mortgage payment when I won't even be there.
On the other hand, if I did buy a place, most likely I'd only have about a 60k loan, as the rest will be paid out of money I made off of the HI place. Initially though, I might have to just put down 5-10% and wait until the HI place closes and frees up the money.
My other option, as I said before is to just rent, and put that large chunk of money into something safe and buy when I return.
I currently have about 60k in savings, although 10k is truly liquid (the rest is in retirement savings, and other mutual funds which I refuse to withdraw money from).
Thanks for the comments
Virginia