AssetBuilder Inc. Registered Investment Advisor - Simple Investing. Smart Future.

I am being transferred from Houston to Austin and I have 6 months to make the move. My house is 25 years old and we are in the middle of doing some updates to it. What I had planned wont be done by the time I need to move.

My question is, should I pay off my house before I move so I dont have 2 payments until I can sell or rent my old house ? I owe about 18 K at 5 3/4 % interest. I have a money market account that I could do this with.

 Unless you have loads of uncommitted cash this would not be a good thing to do. Moving is a good time to maximize your financial liquidity, not reduce it. Remember, your personal security is not a function of how much you own debt free. It is a function of how long you can maintain your current commitments and standard of living if your income disappears. That $18,000 in cash could come in handy.

Scott