Payoff Mortgage? Invest for remodel?
We bought a new home (value 190k) in February and currently owe $144000 on a 30yr 6.625% interest. We have sold the home we are living in now and will net around $135000. (closing is June 15th) Do I pay off this new mortage with the money from this sale and save all of the interest money or do I invest it?
We will be adding on to our new home and renovating a kitchen. My wife doesn't want to start it untill this fall. Do I keep the money handy until the renovation or should I just use an equiline of credit at 1% over prime? We can adjust the current mortage one time to shorten the years or adjust the payment. (at no charge)
What would you do?