Am I sinking, swimming, or above it all?

[ronocnikral]

welcome. i would just like to reiterate that you are financially in good shape after a divorce. my wife's ex was stuck paying alimony for almost 7 years, but he had to have known trying to keep a wife on each side of country was an expensive habit.

one thing i'm curious about is the practice of paying interest only on the house? i guess my thought is, with interest rates so low and our future plans fairly uncertain, why not pay it down a little? just curious. it seems like you have plenty of room in the budget...don't feel obligated to share if you don't want to.

welcome again.

 

[startingover]

welcome. i would just like to reiterate that you are financially in good shape after a divorce. my wife's ex was stuck paying alimony for almost 7 years, but he had to have known trying to keep a wife on each side of country was an expensive habit.

one thing i'm curious about is the practice of paying interest only on the house? i guess my thought is, with interest rates so low and our future plans fairly uncertain, why not pay it down a little? just curious. it seems like you have plenty of room in the budget...don't feel obligated to share if you don't want to.

welcome again.

The deal on the house is that there is a decent spread b/t what I owe and what it would/should sell for. Further, I feel strongly that it's at the bottom end of the value - put another way, it's certainly not at the peak! Even if it sells for 10% less, I stand to make money. Because I don't plan to be there for more than a year or two, I felt like my money was better placed in my 401k, ROTH IRA, etc. If the spread were closer relative to what I owe and it's worth, I would be more inclined to pay some principal. Or, if I were staying longer, I certain would be.

Thanks for your input!

 

[Milton]

I don't know much about 'interest-only' mortgages - well, nothing, really.

Wouldn't renting be a lot simpler?

 

[startingover]

I don't know much about 'interest-only' mortgages - well, nothing, really.

Wouldn't renting be a lot simpler?

I don't think so. I'd have no equity and be flushing my money down the toilet by renting. Basically, I have the ability to pay interest only for 5 years. I still pay property taxes, obviously, but I also have them to write off. The only way I feel it could harm me is if the value of the house dipped below my balance. Since there appears to be at least a $45-50k "gap" b/t those two figures, I feel comfortable.

 

[hakuna matata]

Hey Startingover
Glad you made it over here. I think you will find this board much better for your financial questions. When I saw your post on that other board I knew you would fit in here! Welcome. Good luck and as I mentioned over there I think you are in great shape.

Hakuna Matata