[Mark]

Hey Everyone, I have a multi part question. My wife and I are debt free except house contributing 15% and have extra income we are not using of 4k each month.

We will need to get her a bigger car soon for a growing family so we need to save for that but we are also wanting to save cash for moving to another house.

My question is should we put the full 4k to a car fund until we have cash to buy the car (My guess is yes).

But after that should we stash the 4k in cash for the next house or should we put the extra 4k per month on our mortgage and use the equity from current home sale as our down payment?

In Short: Stash 4k per month for down payment in cash or pay 4k extra a month on mortgage and use equity from sale for next house down payment?

Thanks.

[Karen]

When you sell the house you’ll have more equity to use as a down payment. Putting that $4,000 each month on principal is amazing!

[Randi]

Yes, pay for the car upgrade in cash.

Yes, keep paying extra on your mortgage, it’s a forced savings plan. Then when you go to buy be sure the purchase is contingent on selling your current home, those proceeds will be your next down payment.

[Becky]

Pay down your current mortgage until you actually start house hunting. Then save up a few thousand for moving expenses like rental truck, boxes, buying meals for family amd friends who help etc..

[Liz]

I asked this question a few weeks ago and most people answered to pay down the mortgage, in my case the interest rate is 2.25 so didn’t make any mathematical sense to do that… but that was the overall answer.

[Kristin]

Pay down your current mortgage after getting a car. You will be able to use the equity out of your current home toward buying your next house when you sell.

[Stephanie]

There’s NO option of saving for a car down payment, which was in your summary.

Save the 4000 cash plus the sale of her current vehicle. So that will get you there in just a couple months. It doesn’t need to be some 40,000 vehicle. What’s her current vehicle worth to sell?

What’s the equity in your current home? After you buy the car, you can put more into principal but ALSO a sinking fund for moving expenses.

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