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Stephen G.
Stephen G., Sr Financial Expert
Category: Finance
Satisfied Customers: 6172
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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We are paying a mortgage payment of 3600$/ month on our

Customer Question

We are paying a mortgage payment of 3600$/ month on our primary home. We own a vacation home(paid off). We also are paying 1300$/month on a condo for our daughter while she is in grad school. We plan to sell our vacation home and begin building our retirement home in another location. My husband wants to use what we make on the sale to pay off the condo. And he wants to sell our primary home and buy a small house until he retires in about 5 yrs. I feel we should stay in our current home for the 5 yrs. I also think we should not pay off condo because our daughter will finish in about 3 yrs and we,ll probably sell it at that time. I feel we should bank the money from our vacation home and invest in our new home. What do you think?
Submitted: 6 months ago.
Category: Finance
Expert:  Stephen G. replied 6 months ago.

It's really not a tax or financial question as there are advantages & disadvantage going down either path and much depends on the economic fallout from the election.

What it really comes down to is that you want to stay in your existing home and your husband wants to get out from under the $3,600. mortgage payment as when you add the additional $1,300. from your daughter's condo, you are now caring almost $5,000. in debt service. That equates to a minimum of $16,500. in monthly income. Also, if you have a profit on the sale of your vacation home, you will pay between 20% & 30% in tax on the gain, depending upon the state you reside in and where the vacation home is located.

Banking the after tax money from the sale of your vacation home probably won't get you anywhere near the return that you would get by paying down or off the condo as you would never be able to get a safe return anywhere near the interest rate on the condo mortgage.

When all is said & done, I hate to do it, but I'll have to side with your husband on this one purely from a financial standpoint. However, I would be careful about selling your existence residence if you aren't ready to do so, as that alone is reason enough to hang on to it for the time being.

Steve G.

Expert:  Stephen G. replied 5 months ago.

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Expert:  Stephen G. replied 3 months ago.

Just checking in...In reviewing my "open" questions, I see that you have not returned to view my response to your question.

Is there something else I can do to satisfy you, or may I clarify anything with respect to your question?

Despite the extended time following your question & my response, I would be happy to clarify anything for you or to answer any follow-up questions you may have.

If you don't have any additional questions or comments, then I would appreciate it if you would provide a rating so that I may close out your question favorably & receive my share of the payment you made some time ago.

Thanks very much,

Steve G.

Expert:  Stephen G. replied 2 months ago.

Did you experience problems with re-locating your question after I responded to it? AND/OR,

Did you by any chance experience problems with the rating system? I ask as around the time of your question the site was having some issues in this regard and some of the ratings weren't credit to us. If that was an issue with you, perhaps you could just indicate your rating in words, hopefully good, very good or excellent. If you would take a moment to do that, customer service with credit me with responding to you and close out the question favorably.

Thanks very much,

Steve G.

Expert:  Stephen G. replied 2 months ago.

Just checking in.....................

I'd like to close out this question before the end of the month, if possible.

I would appreciate it if you would take a moment to let me know if I can assist you further and/or if you would provide a rating for my responses as indicated above.

Thanks again,

Steve G.