Since I left my job, I decided to relocate and buy a new home. I have been told to pay off my present mortgage to reduce debt in order to obtain a new mortgage. Or is it best to sell first and hope I find a house and mortgagor before closing. Or…pay cash from IRAs for new home and once I sell first home, reinvest…
Advisor has said never pay off mortgage, it’s good debt, but I’m favoring paying it off and pocketing that payment. Interest rate is at 4.25. Thank you!
We paid off the mortgage at my fiancé’s house then sold it. I cant speak to using IRA’s etc, but it felt great to be rid of that debt and then plan to purchase a new home with cash!
One thing we didn’t think of, was that when you sell, there’s additional paperwork to be done if you own (and recently paid it off). Usually you get get forms from the bank, but now they have to come from the town and that was delayed with COVID…
I still would pay off the debt, just know that you may need to do an extra step when you sell.
Thank you for your response. Although advisors say I’ll be losing cash, seems to me it will come back at sale of house.