Heloc, Home Equity or Cash

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snowox
Posts: 390
Joined: Wed Nov 08, 2017 9:17 am

Heloc, Home Equity or Cash

Post by snowox »

This is part 2 of a post i had a week or so ago. Here was the post -viewtopic.php?f=2&t=325119

Basically, I have roughly 2.3 Million of which 400k is in Cash and the rest 60/40 and I have been withdrawing 60k(though my portfolio is set up for up to 80k if I wish to take it but havent needed too) or 5k a month as the markets been going up to live on. Most of the Cash build up came from selling a property and buying a new one So that leads to my question upcoming a bit. In addition While I am Fire'd my wife still works albeit by her choice and basically after contributes to HSA, 401k w/4% match and Health Insurance takes home a net of 3k a month. So our monthly budget is 8500$ a month in which we usually come under on average 1k a month but I like to have that flexibility.

We are mortgage free and have Zero debt with in and around a 840 credit rating. And our house is minimum worth on Fire sale 750k but probably get 850k so for round numbers lets say 800k.

Based on my last post it was determined by most if I spent 250k to put into my home which I have done 100 so far so another 150 that I could afford it based on our income and budget.

Here is my further thought. Would I be better taking a loan of some sorts for 150k for 15 years be it Heloc or Home Equity or is there such thing a a first mortgage loan. Or with having 400k in cash just paying for it and living of the cash and leaving my investments as are unless there is a dip to put money back to work. I will be 56 in in October the DW is 52. She tried retirement with me 5 years ago but wasnt ready but knows now she wants to be done in 4 years when we are empty nesters.

Thanks!
HomeStretch
Posts: 4895
Joined: Thu Dec 27, 2018 3:06 pm

Re: Heloc, Home Equity or Cash

Post by HomeStretch »

Your $400k in cash is likely earning very little interest. Consider paying cash (rather than using debt) for your remaining $150k home improvements.
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