I have $265,000.00 in savings, 2 mortgages,one for rental property that pays both mortgages,shouldI pay off?

Question

the mortgages or just hope i don't lose my money with the banks closing???

Answer 1

Glad to see someone with good news.

Split the $265 k as mentioned.

I would look for another rental property like you have, with positive cash flow, you could keep building your equity long term.

Answer 2

You should split that savings into accounts at different institutions to not exceed $100k.  or, you should invest it in some other conservative funding like bonds or such.

Don't pay your mortgages off... right now, any money you put towards your houses is going down the drain b/c of the decreasing values.  it's better off in savings at the moment.

that's a fair chunk of change, you might want to talk to a financial advisor.

Answer 3

With that much liquid capital, you should start looking into real estate investment.  Everyone thinks that economic downturn eliminates opportunities, it is just the opposite.  We've been going through so many housing market fluctuations throughout history, the thing is that the market always goes back up.  That is really how Robert Kiyosaki (author of Rich Dad, Poor Dad) made his money.  Now that being said, you should still borrow money to buy property, you want to maintain as much liquid capital as you can.  As long as your account is $100,000 or under PER DEPOSITOR, you're covered.

Answer 4

If you want to pay off the mortgages, go ahead. If you don't need to, don't. Remember that you are insured up to $100,000.00 with the FDIC, so you can always move your money around & invest it in different things so you won't lose it. Also, 1 bank went under & reopened after the weekend, so I think you are panicing a little bit too much!

Answer 5

Why would the banks close?

If I were you, I would pay off the residence that you are living in (non income bearing property), and let all the rent go into the other bond (income bearing)

Invest the rest into shares or unit trusts

Answer 6

Here are some questions that come to mind.  Are the savings in FDIC insured accounts?  You might want to get them protected.  What do you judge the chances to be that your rental property will continue to produce an income stream?  What is the difference between the interest you earn and the interest you are paying?