Hey everyone,
I could use some advice on a financial decision I’m facing. I currently have about $150K in a bank account overseas and I’m looking to bring it into the U.S. I’m in the process of buying a house using a VA loan, which is priced at $370K. The seller is covering the closing fees. My loan officer has calculated that with an interest rate of 6.25%, my monthly mortgage payments would be around $2600 to $2700.
If I use my personal funds to reduce the mortgage, my monthly payments could drop to around $1300 to $1400. I’m also considering using the funds to buy another property to rent out or use as an Airbnb in the FWB/Destin area of Florida.
For context, I am an E3 with a BAH of $2300, have 4 dependents, and also have around $40K in assets here in the state.
What would you recommend? Should I lower my mortgage payments with the $150K or invest in another property?
Thanks for your advice!
Financial literacy
byu/Interesting-Note-542 inMilitaryFinance
Posted by Interesting-Note-542
4 Comments
Lower payment
Yes spend the whole 150k. But don’t just pay the lower rate. Pay more up to what you’re getting bah at. You will be so close to paying it off when you move again
Put $100k down on the house. You’re going to need $20-30k to renovate the house and make it yours. Whatever you don’t use to renovate, use to make an early payment on the principal of the mortgage.
The rest is your emergency fund.
If you are interested in real estate and really want to min/max you benefits, you could instead of buying the home you’re looking at use the $150k as a down payment on a 4-plex, and use your VA loan to live in one of the units and rent the other three out.