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  #1  
Old 04-04-2012, 02:28 AM
RentAscout RentAscout is offline
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Default Use inheritance money to pay off mortgage?

Okay, I'm 23yo with a 30 year $244,000 VA mortgage at 4.5% and no other debt. Now my father in law passed away and left $211,000 and a property thats in $50,000 - $100,000 range. Will paying off this mortgage hurt us in any way? I want to invest the rest into a retirement plan but what kind of taxes do I owe now if this paid off? Thanks everyone.
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Old 06-06-2012, 09:06 PM
majordad majordad is offline
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Default Re: Use inheritance money to pay off mortgage?

You are so young to make such a decision. My first inclination is to say no, don't pay off the mortgage but, put the money in an account with Fidelity or Vanguard and invest it. Problem is, you could get your hands on the money and occasionally spend some of it.

If you pay off the mortgage, you would probably save a lot of interest on a $244K mortgage. If you would put the house payment in a Roth IRA, it would be a win win for you. The Roth IRA is a great retirement tool. I wish I had used it instead of the traditional IRA.

Large lump sums of money don't come along very often. Be very careful with this decision. Most young people would blow through the money very quickly. Please, be careful and don't get in a rush to do anything.

A wise man told me that I should always take advice from people who are more successful than I am. It seemed like good advice at the time. Do you know someone who has done well financially? I mean someone much older than you.
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Old 06-07-2012, 09:36 AM
littleroc littleroc is offline
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Default Re: Use inheritance money to pay off mortgage?

How would paying off debt hurt you? It wouldn't you would lower your risk and increase your chances of being quite wealthy by freeing up more cash to invest with less risk because you have less debt hanging over you.
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Old 10-30-2012, 10:01 AM
polly_12 polly_12 is offline
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Default Re: Use inheritance money to pay off mortgage?

Money can be easily spend especially those you avail for free, like your inheritance. You have to be careful on spending it well. But if I were on your shoes, I'll probably pay off the mortgage. It is always good to be debt-free even if I don't have investments or retirement plans. The stress of having a debt is so much especially if you'll face foreclosure because you are late in your repayments, considering our economy these days. Hope you'll come up with a good decision. Good luck!
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Old 02-07-2013, 06:01 AM
Donovan Donovan is offline
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Default Re: Use inheritance money to pay off mortgage?

It wouldn't you would lower your risk and increase your chances of being quite wealthy by freeing up more cash to invest with less risk because you have less debt hanging over you.
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Old 02-08-2013, 11:10 AM
fsna.hartley fsna.hartley is offline
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Default Re: Use inheritance money to pay off mortgage?

Pay off the mortgage and get another one for investment purposes. Real estate is a very profitable investment nowadays.
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Old 02-26-2013, 02:08 AM
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VanReb VanReb is offline
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Default Re: Use inheritance money to pay off mortgage?

Pay off the mortgage. Debt doesn't do anyone any good and now that you have the option - take it!
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