What to do with 8k house rebate...

saltrooster · #1 (**permalink**) 05-04-2009, 02:00 PM

Hello All,

I would like some serious general advice as to what I should do with the rebate I will receive next year. Should i immediately use it towards house upgrades, furniture, put it all into the bank savings account, use it all to pay down the mortgage, or invest it all? a little of each?

I guess my long term goal is that given an 8k check like i just won $10 scratch lotto ticket, i want to put the money to its best use. Man i sure wish suze orman would accept personal emails!

Jack

Watts · #2 (**permalink**) 05-11-2009, 11:55 PM

An $8000 dollar payment on a $150,000 house over 20 years at 8% will save you $20,000. If your house costs more, it will save you more. Interest hits the hard, and a $8000 payment will allow you to cut a year and $20,000 off, so I'd say go with that. Not to mention the reason for the rebate was to help with the cost of the mortgage.

grow14me2 · #3 (**permalink**) 07-08-2009, 02:11 PM

I agree with that UNLESS your house has honest upgrades that could increase it's value by more than $20,000 if you put the money into fixing it.

equity space · #4 (**permalink**) 04-30-2010, 08:37 PM

Take the $8,000 and do what poor people don't do; throw into a mutual fund and forget about it. When you're ready to retire, it'll be a nice little gift to yourself.

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