What is your advise?

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#1

We have a rental home in CA with a loan of approximately $252,000.00 @ 3%. The monthly payments from our renters cover the cost of the loan, taxes, insurance, association fee and leaves us with approximately $229.00 per month for repairs if needed. Home value from Zillow is $685,000.000

Our primary home in CA has a mortgage balance of approximately $84,720.00. It is not due until 2050. The first loan has been paid in full. This $84,720.00 is 2nd loan. It is a modification loan opened in 2010. The entire balance has to be paid in full by 2050 (one lump payment, 0% interest monthly) Home value from Zillow is $874,700.00

We have about $300,000.00 in retirement funds (we are 55 and started investing late). My question is we have approximately $80,000.00 saved, aside from our emergency funds. Should we invest that money or pay down our mortgage loans. We don’t have any debt as far as credit cards or car payments.

Thank you!!

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#2

Thank you Jeremy for answering my question. Here is a bit of the back story on the primary home loan. The 2nd loan is a forbearance loan that we applied for after the dip in 2008. TIAA Bank called it the “Deferred Principal Balance” meaning after the primary loan is paid in full we have to pay the deferred amount at the agreed date, which is a 40 year loan, (2050). A very unique situation I know. Thank you again!!

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#3

Hi Miriam!

Oh, I’m glad you saw the answer! That is certainly an interesting loan! But yeah, I’d invest that money and as you draw nearer (like maybe 10 years and 5 years out) make a plan to remove the money from the market so you’re ready to pay the bill!