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Author: RecoveringFool Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5748  
Subject: Re: Payoff Mortgage? Date: 2/19/1999 12:36 PM
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<<Now, for the question...I will soon be inheriting enough money to pay of the "second" mortage (about $55,000) if I want to. This loan carries an interest rate of approximately 8%. Do I payoff this mortage which would reduce the interest expense on my home substantialy as well as increase my monthly cash flow to the tune of about $455 per month, or do I take that lump sum of money and invest somewhere else? >>

I can only say what I would do(and I am conservative with money). I would pay off the second mortgage and immediately set up an automatic investment program for this money - say to a Vanguard Index Fund. If I didn't have the minimum, I might pay off $52000 of the mortgage, put $3000 in the fund to get it open and then when the reat of the mortgage was paid off, I would set up the automatic debit. But that's just me.

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