PAYING OFF PARENTS PLUS LOAN WITH SELLING A HOUSE
We have $50,000 in parent's plus loan (recently refi to SOFI) per you suggestion. We are selling our house and plan to pay off the plus loan with the proceeds. Is this feasable or do you have to use the proceeds to invest in another house? Thanks
Terry Says
Definitely use the proceeds to pay off the loan. Even at the lower refi rate, paying it off will save a fortune in interest. You can use the proceeds for any purpose you want. And remember, if you're a married couple filing jointly, you can exclude $500,000 of capital gain on the sale of your residence. Congrats for getting out from under this debt burden!