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Hi :)

If you buy the home outright be sure it is titled in an appropriate way.

For example, what would happen if: 1) you were sued (if you own your own business, someone gets hurt on your property, etc) 2) someone in your family gets very sick and you end up with large medical bills or 3) you somehow end up in large debt and have to declare bancruptcy

In these situations: having the house titled properly in advance and have adequate insurance is very important.

Also,...Do you think the new home you buy might decline in value shortly after you buy it? Is that one of the reasons why you want to take out a mortage on it? (or if you plan on moving shortly after moving in)

I would presume (but am not in that sitaution) that owning a home outright would bring a lot of peace of mind. Since you could always take out a home equity loan if needed. I would think this would be even more true when there is 4 little ones involved.

I would think as far as putting money aside to max out an ira would not be the best use of money. Instead use to money you earn and put it in the ira. Sort of like an expense. (probably am not saying that teh right way) But, you could easily that the remianing money after all is paid for (@60K) and put 8k into your wife and your 2005 ira.

I could be very wrong here, but I would think if you own a home outright it would be easier to invest in real estate. But, i know nothing about it.

As far as college funds...i think even if you do buy the house outright you will still have a substaintal amount of money to put towards all of your goals all with the added peace of mind that the home is yours free and clear. And with the money your not paying to the bank on a mortgage you can put that much more towards your goals.

I think your in a great situation, congrats :)
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