No. of Recommendations: 2

I'm puzzled by this ... our debt (other than mortgage) is just under $37,000. Do you feel that amount is excessive?

Yes, I do. I personally believe in being minimally in debt. Debt adds risk and in the event of an emergency having debt obligations can quickly become crushing. Having debt means you're losing money to debt service. So your investment of $50K, its gains are being offset by interest on the $37K in debt. I also hate being leveraged because it can come down quickly like if you lose two renters and then a job. $37,000 in non-home debt would sink a lot of people. $37K is annual salary for many people in Central and Western Mass.

Very possible, but we're betting that mortgage rates will rise between then and now and that such increases will financially negate any future drop in prices

Well, if that's the case, you still lose because that affordability will erode even further pricing on your condo which is bleeding. All the more reason to take the loss, IMHO.

You've got a great situation right now, and if I were making as much as you I'd pay off my debts and get at least one of these properties sold before I bought a house. I'm also thinking, if you tackle these debts now, it opens up other oppourtunities in the future, such as if you have kids, your wife staying home, or a part-time nanny, instead of daycare. A college fund for the kids. Long term care for any elderly parents. tie up less money in monthly payments to banks, and start paying yourself for the future.

Good luck!
Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.