Should I pay off primary house early or a buy another one?

So I started this thread sometime ago:
http://www.homes.com/question/57647/Question%2Dabout%2Dbuying%2Dan%2Dinvestment%2Dproperty%2Dor%2Dcommercial%2Dproperty%2Dor%2Dpaying%2Doff%2Dhouse%2Dearly/

Looking at the overall market and interest rate in our area, I have a great interest rate and my payment isn't bad either. Hence asking following follow up questions:

1-Is it safe to pay off early and be done with the house payment for primary house? Although I am taking an interest rate deduction on my taxes for it too, but if all goes well I can be done with payment this year.

2-Should I keep paying existing house and buy another one and rent this one out? I think, can easily qualify for another loan.

Or what other options should I consider from investment or you guys would suggest?

Thanks very much for all of your help and inputs.
(0) | asked by: Syed Shah | share | 1 month ago | Report
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answer by Ricardo Gehrau    |   Visit My Website   |   Contact Me
Considering the rates still low you may go ahead and buy a second house for investment. However, take in account that you will not occupy the house so the lender will consider you an investor, therefore the down-payment percentage could be 20% and rates can be higher for an investor loan.
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answer by Kaalin Fullilove    |   Visit My Website   |   Contact Me
Interest rates are low right now and property values steadily keep increasing. Now is a great time to purchase an investment property!
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4 weeks ago  |   Report   |   share
Syed Shah
answer by Syed Shah   
Thanks very much all for your valuable input and help. I appreciate it.
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1 month ago  |   Report   |   share
answer by Clarence Wills    |   Visit My Website   |   Contact Me
Pay off since you are so close and then buy another one!
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1 month ago  |   Report   |   share
answer by Harjeet Bhatti    |   Visit My Website   |   Contact Me
If you want to be an investor, you want to keep liquidity in your hand. Your renter will pay for you and you will have equity in your house.
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1 month ago  |   Report   |   share
Syed Shah
answer by Syed Shah   
Thanks very much everyone for all of your input and suggestions. I appreciate it. Let me think about a few scenarios, since there's no right or wrong answer to it. I just wanted to get more opinions and thoughts from people who know better than me. So please continue sharing your feedback. Thanks again.
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1 month ago  |   Report   |   share
Juliet Mayers
answer by Juliet Mayers, Realtor Front Porch Team Keller Williams   
I would buy another home if you have the cash to do so and have it as a rental income stream. Then you can use a significant portion of that rent payment to pay down and off your current mortgage. It all depends on the specific numbers you are talking about. I have a great financial planner in Prince William County who you can speak to, and great lender partners as well who can help you look at your situation in detail so you make an educated decision. In my opinion mortgage debt is not bad debt, but yes, you want to make sure you are comfortable with your mortgage and are paying it off/down. If you have to opportunity to invest in real estate, in my humble opinion you always should as I have seen first hand the wealth you are able to create for your family. I am a local Realtor in NOVA located in Prince William County. I serve your area, Bristow and other local areas. I work with Investors, sellers and buyers. I would love to have a further conversation with you. Juliet Mayers, Realtor KW Licensed in Virginia. Top 100 Realtors Northern Virginia, ABR, PSA.
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answer by Lana Moncada    |   Visit My Website   |   Contact Me
Good Afternoon, Syed! Given the current market conditions with the interest rates still at historic lows and demand for housing remaining strong in our area, I would recommend looking into either an investment property or a new home and renting out your current residence. Not only will you continue to enjoy the tax benefits, but will also build additional equity and generate income. I am local to the Bristow/Gainesville area and would be happy to meet with you in person to talk in more detail and provide you with the information you need to make an informed decision. Lana Moncada
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answer by Shelley Mastro    |   Contact Me
Dave Ramsey says...Pay off your home early – He has also remained consistent on his policy to buy homes only once you are debt-free, on 15-year fixed mortgage, and so the payment doesn’t exceed 25% of your take-home pay. Hope this helps some. Shelley Mastro
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1 month ago  |   Report   |   share
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