Need Advice - should I pay off my house?
I just closed on the sale of the house that I inherited from my grandmother last year. Including the proceeds from the house and the investment account funds and cash I also inherited, the total is around $450,000. I have about $250,000 in an Edward Jones account which is mostly in bond funds. I have almost $200,000 in my checking account now after depositing the check from the closing today.
What should I do? I am 35 and single. I have no debts other than my own home, for which I owe about $75,000. The interest rate is about 6.1%. I just lost my job due to a takeover by another company, but I have a very solid prospect with another great company. In fact, I am expecting a call from them any day. I have already had 2 interviews and I got the distinct impression they really want to hire me. My pay will increase (hopefully) and I will be savings tons on gas since I will be working 5 miles from home instead of 45 miles!
Should I pay off my house? I want to spend about 10,000 on my current home to get some new wood floors and redo some things in the kitchen and bathroom. What should I do with the rest? I certainly don't want to keep $200 grand in my checking account. I also have about 13,000 in my 401K account that I will either have to rollover to an IRA or take the distribution from my old job. I am also unsure about what to do with my investment portfolio. The fund manager suggests I keep about 40% in bonds and then change everything else around to mutual funds accounts. But there would of course be about a 3% charge to do this, which would cost me about $3,000.