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Ask Shop Rate: Donna - IN

Posted by  on Apr 16, 2009
 
We are thinking about buying a rental house next door to us. It is a older home but has been remodeled ... We have about $50,000.00 dollars saved, half of the money is in a short term CD at 4.65%, half in a savings account at 2.34%. Should we pay all...as a down payment. The house is selling for $70,000.00, and it can be rented...or should we pay 20% down and finance the rest? You best bet might be to use the money in the low interest savings account and put 25% on the property to get the best pricing/rates and keep the CD for now.

As a rental, you will want to have a mortgage to offset any income and lower your taxable gains from a tax point-of-view.

Good luck with the purchase!


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