Syntax Question

**Sharkbiter** · 10-11-2009, 08:14 AM

Here is a question of order versus plan.

I am within striking range of having all my non real estate debt paid. I do still have a mortgage and equity loan. My current plan is as follows:

*Pay off remaining non real estate debt
*3-6 months Emergency funding
*Sell the house paying off all loans on the house and walk away with a couple dollars
*College funding
*15% income to investments
*Rent a place (until Construction is complete on new home)
*Move into the new house
*Aggressively Pay it off

My question is does it make sense to do anything with the house debt if the house is being sold?

**Greebo** · 10-11-2009, 08:42 AM

Well, paying it to keep it current would be a good idea.

But other than that, what do you mean by "do anything with the house debt"? Pay extra? Refinance?

**Denvergirlie** · 10-12-2009, 11:48 AM

Do you already have retiremenent funds? Normally, retirement is funded before college for kids as kids can always take student loans, but there is no loan for retirement really.

Unless you can do both at the same time, retirement should come before college.

As for the house debt, keeping current is all you need at this time. Unless the house sale is still way off in the future. Any reason that you don't just start the house selling process now?

**Sharkbiter** · 10-14-2009, 08:46 PM

Originally Posted by Denvergirlie

Do you already have retiremenent funds? Normally, retirement is funded before college for kids as kids can always take student loans, but there is no loan for retirement really.

Unless you can do both at the same time, retirement should come before college.

As for the house debt, keeping current is all you need at this time. Unless the house sale is still way off in the future. Any reason that you don't just start the house selling process now?

I figured I would just wait till all non real estate debt was paid prior to putting the house up for sale. Figuring that any prep/improvements would not deter final snowball payments. I do plan to do step 3,4,5 all at the same time as I do have a son in the first few months of college. I do have income to comfortably manage without the debt payments to do it. (Well at least i think i can

)

**Sharkbiter** · 10-14-2009, 08:48 PM

Originally Posted by Greebo

Well, paying it to keep it current would be a good idea.

But other than that, what do you mean by "do anything with the house debt"? Pay extra? Refinance?

Yes the plan is to pay the min for both regular mtg and home equity until the sale clears both debts.

Debt

**Greebo** · 10-14-2009, 10:34 PM

Yes, if you have non real-estate debt, I would not pay extra on real estate debt until the consumer debt is eliminated.

**Preston** · 10-22-2009, 04:07 AM

Well, instead of renting would it be possible to just stay where you are and pay down the mortgages? Then when the house is near finished put it up for sale?? It seems like a waste of money to sell it right now (in an iffy market) than it would be to stay put and then sell it when the house is closer to being completed.

**Greebo** · 10-22-2009, 06:20 AM

Originally Posted by Preston

Well, instead of renting would it be possible to just stay where you are and pay down the mortgages? Then when the house is near finished put it up for sale?? It seems like a waste of money to sell it right now (in an iffy market) than it would be to stay put and then sell it when the house is closer to being completed.

But the risk there is that if the market does not improve, and he cannot find a buyer for his existing home, then he'll be stuck with a mortgage on his old home while his construction mortgage on his new home converts into a real mortgage and starts expecting to be paid.

2 mortgages = baaaad...