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Archive for August, 2010

What Would You Do

August 18th, 2010 at 01:19 pm

Ok my fellow bloggers, I need your opinions. I have a rental that has a balance of $84.1K that I could pay by Dec 2011. Below are my thoughts:

1. While deployed to Iraq, I put $10K away in SDP which I can withdraw now. I was going to just add it to my Retirement Home Down Payment Sinking fund which currently has a balance of $51K. However, I could put that towards the current mortgage instead.

2. I currently have $14K in my Car Replacement Fund. I'm not planning on buying a new car until the summer of 2012..that's when I'm retiring from the military. I could take that $14k and put in towards the mortgage as well.

3. I'm currently throwing an additional $2500 monthly towards the mortage. If I was to take the 9K and 14K and bump the snowball up to $3000K in Jan 2011(which I should be able to do without a problem with my raise,I'm in the military), I would pay off the mortage in Dec 2011.

4. Then I could take my snowball of $3000 and the rental income of $1100 and rebuild my new car fund and then some with no problem. All the while, I have $51K in my home down payment acct.

5. I guess the main thing I'm wavering on is do I just put the money in my home down payment account since this is a rental and I will probably end up selling it in 2012 anyway. I also love the idea of having a paid for piece of income producing asset that paid in full.

6. I'm just interested in seeing what others think. Thanks in advance!