Inheritance — loan payoff?
Hi Terry I listen to you on WGN every week and have a question. My siblings and I are selling our childhood home and I gain to inherit about $65,000. I have a Heloc of $40k at apr of 9%. I owe about $230 on my $500k home and have no other debt. Is it wise to pay that off or pay some of it down and refinance because I want to buy an investment property with some or most of this money?
Hope I included what you need to answer.
Terry Says
Immediately use your inheritance to pay off that 9% loan. And put the balance in a money market deposit account in your bank, which should earn at least 3%.
Hang on to the balance of the cash before making an investment in anything else. That liquidity will allow you to buy bargains when the inevitable recession occurs.
