Zillow Advice: Home Buying - what should i do with my 8k comng to my pocket, put it in the house, invest it in the stock market??

Ah yes as katrina8 mentioned ...

Mon, 29 Jun 2009 15:35:00 GMT

Ah yes as katrina8 mentioned the "$300 I'm a home owner now Target" trip." It brings back memories...that and the "$50 what the heck is this thing that just broke Home Depot trip." If I were you, I'd save some and spend some. As a homeowner, there are costs that may come up that were unplanned and it takes time to adjust to not calling the landlord for the repair. Take a nice, but inexpensive trip. Mexico is cheap right now and save the rest for a rainy day. It's the best of both worlds.

Save the money for a rainy ...

Mon, 29 Jun 2009 14:37:00 GMT

Save the money for a rainy day. You now own a house and something is bound to occur that you were not expecting. I also find that even the simple things add up as you move in and realize you need an extra garbage can or a weedeater or a new shower curtain.... The first six months I don't think I ever left Target with less than $300 of stuff.

If at the end of the year, you haven't spent the money on misc stuff, have an emergency fund, and plan on living in the house long term, then send in an extra mortage payment, else you can go on your cruise (as no need to pay down mortgages on temp homes).

Disclaimer: I am not a financial ...

Mon, 29 Jun 2009 13:55:00 GMT

Disclaimer: I am not a financial advisor.

Put it into as high an interest bearing account as might be available today without penalty for early withdrawl. You may need some or all of it next month.

My order of preference would ...

Mon, 29 Jun 2009 10:58:00 GMT

My order of preference would be:
1) Make any repairs to the house you think need done.
2) Make some reasonable upgrades to the house, or buy furniture if you need some.
3) Pay the rest into the mortgage.

I think the stock market will dip below its lows again in the next 6 months, so I wouldn't be putting much money there for the near future.

well, you can essentially ...

Mon, 29 Jun 2009 08:59:00 GMT

well, you can essentially take it for granted that if you invest it in a boreing S&P 500 index fund, that 8k will be worth 5k or less next year.

if you invest it in your house by paying down your mort, you should be able to reduce your payment by as much as 40 bucks a month. 40X12X30 = 14,500 in savings over the life of the loan.

if you invest it in your home by investing in energy efficient upgrades (ones that presumably will hold their value like skylights, a high end central heater, etc, obama's stimulus will give you an additional 30%, in tax credits plus most units have state and federal rebates too which may allow you to increase the value of the home by 18,000 or more, however, be warned that such a move in a declining market may show the entire investment wiped out( and then some)... also you have to be smart about it, buy a new wolf stovetop for instance and your investment will depreciate over time.

if you invest in 8000 worth of TIPS(which yeild 2%+ the rate of inflation right now) a long term CD (which can get you 5% a year for 5 years) or the vanguaurd GNMA fund (the assets are fdic insured but it beats the hell out of any MMA for the moment) you might have 10-12k to do with what you want after 5 years

if you like to gamble you could put it here (you will see my coments on this) possibly end up with 64,000 when all is said and done, (it probably wont go to zero, but you could lose 80-90% too)

all in all, if you can afford it, i highly reccomend the cruise.