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What Should I Do With $160k From Home Sale? Buying Forever Home with temporary FHA Loan

  • Thread starter Thread starter /u/Realistic_Leather965
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/u/Realistic_Leather965

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I need some advice on how to best manage the cash from my current home sale.

Here's my situation:

  • I’m selling my current home and moving into what we consider our dream home, which will be our forever home.
  • I currently have a 3.75% mortgage rate on my existing home.
  • For the new home, I can secure an FHA loan with 3.5% down at a 6.375% interest rate, which is nearly a full percentage lower than current conventional loan rates.
  • This transaction will leave me with about $160k in cash.

My plan is to refinance the new home later on and I will need some of this cash to roll into a conventional loan to avoid PMI.

What would be the best way to manage and grow this $160k in the interim?

Considerations:

  • Need to preserve a portion of this cash for future refinancing without PMI.
  • Want to grow this money as much as possible without taking excessive risk.
  • Open to any advice on investment vehicles or strategies that align with my goals.

Thanks in advance for your insights!

TL;DR: Selling current home, buying forever home with an FHA loan at 6.375%, will have $160k left over. Need advice on how to grow this money while keeping some for future refinancing to avoid PMI.

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What Should I Do With $160k From Home Sale? Buying Forever Home with temporary FHA Loan
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