I sold 1m stocks (out of 3m) in Q3 and put it in a HYSA because i wanted to put 70% down on a house in next 6 months-1 yr (wanted low monthly payment). Now stock market is up 25% while i was out of market looking for a house, unbelievable. That was dumb. Haven’t found a house and house prices increased and I’m getting outbid on houses by buyers with stock. Lender says with relationship bonus, interest rate is 5.3%, so I can put down a smaller down payment. What should i do?
Aim to be debt free
Do you have cash shmoney due to ARM stock?
It is objectively stupid to pay off an interest rate lower than an everyday savings account gives you in return. Aim to be liquid and own more than you owe.
What if the scenario was opposite. If this isn’t investment property, you shouldn’t care
Hindsight is 20/20. If market tanked 25% you’d be jumping for joy. Judge the approach, not the results. I’d say put 20% down. Keep rest in stocks. And then decide if you want to pay mortgage off early or make extra principle payments
This. As long as OP has liquid funds available in brokerage, they don't need to go overboard on paying down a 5.3% mortgage.
That would be my suggestion too.. pay 20-30% down.. you can always make "principal only" payments later when you have idle cash and rates are in your favor.
Put all back in stock. Use margin for down payment. Win win (don’t leverage too much; keep $$$ for margin calls in HYSA)
🙄
Play the margin game only when you know it fully and can navigate it with a plan. When you hit a margin call, you will be liquidated in a worst situation losing more than you could imagine.
This is what I understood. You sold 1m in stocks to put 70% down on a mortgage when interest rates are at 5.25% You think you had an opportunity loss because the market is up 25%, today. Listen dude, you made the best decision at the time. And to me, I think is a W. You got a house that is mostly paid off. Not sure why you’re complaining? Now you’re getting FOMO, I understand. Which is imperative to have a long term portfolio. Never sell your long term unless it is for your first house. Listen is in the past oh well you missed out. Literally opportunities everyday. I guarantee you there is a 100% hitter everyday you have to find em. 25% is nothing to dwell on because you got an asset that will grow more than 25% in 30 years.
The confusing part is he didn’t get a house in all this time.
With this money, OP can buy a house anytime but chose not to
Don't you have to pay cap gains tax on that 1m?? Depending on your gains -20%
Oh no, you only have 2M and a house now, whatever will u do
is it another humble brag post 😅 idk why people have trouble if their NW is already 2mil+
Only on blind, folks with bunch of cash in hand complain about life just because others are Richer. God bless us all.
Did the same but far lesser amount in Q2 and was buying tbills >5%. I don’t feel like buying house anymore so put all back in index fund.
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Just buy the house !
You don’t need three months to buy a house. OP, you might be overthinking this.
Listen to this guy