The Motley Fool Discussion Boards
Financial Planning / Inheritance Strategies
|Subject: Re: Question about inheriting a home||Date: 8/23/2012 5:18 PM|
|Author: jfett||Number: 5635 of 5770|
1. Inheriting a home with a mortgage plus enough cash to pay off the mortgage.
2. Any compelling reason to NOT use the cash to pay off the mortgage?
Assume that we have an emergency fund, retirement savings are on track and all of our other ducks are in a row. :-)
Off the top of my head:
What is the interest rate?
3%, but I don't think that it is assumable. I don't know what interest rate we would end up with on a new mortgage.
How does the interest rate on the inherited home compare to every other interest rate you might be paying?
Don't have any other debts.
Will you keep the home or are you intending to liquidate shortly?
Hoping to sell it.
If you keep the home, will it be for personal use or will in be turned into a rental?
If we can't sell it short term, it would be a rental.
P.S. I'm aware that we could theoretically make a bit of money by investing the borrowed money. But I don't think that the extra risk+hassle factor is worth it. Just wondering if there is something we haven't thought of here.
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