Actually, unless he does a refi, it does not change the payment.
But it does put a huge dent in the principal, which is what interest is calculated on, which means in the long term, it is payed off quicker, and the house cost him much less.

Stuffing it in the bank, until it is figured out where to put it, is how it gets spent a little at a time, gift/toy here, vacation there, and next thing you know 50K is gone, with little to show for it.

Dump the cash reserves into an account that is not access without penalty ( CD=loss of interest ) and the remaining into the house, it is gone, forget about it.
A home improvement loan is the only quick way to get it back out, and that additional payment might be the delta between putting away 5% a week, and having to hang your life on plastic. That is a deterrent to wanting to access it.
Of course this is after any tax consequences are figured out, and pulled to the side. The safe bet ( that looses a bit of interest ) is to just pay any taxes ( if applicable ) with the OCT-09 , Q3 quarterly tax payment on 15-OCT-09.

 

You are right, basicly what I was getting at was there isnt a rush on spending the money right away.

 

I could use a Linex bedliner. $600.00 should cover it. .

I agree, I would pay off the house too.

 

I agree with paying down a portion of the house. If you are going to take a trip or two i have a vacation website. Check it out. Most of the time it is cheaper then the rest of the online vacation sites. The website is

www.cjdaniels.rovia.com

 

CD's are great. Maybe make an annuity for your kids that they get when they turn 18 for college. When they turn 18 they get a check in the mail for X amount.

 

thanks for all the advice, except for the 2 guys who said bet it all on blackjack! haha
anyway, my mortgage is about $950 a month on a 30 yr fixed rate of 5.75%.

 

Haha they ment roullette. An even worse bet than blackjack!

 

Blow $10k, (not $10k on blow), Invest $50,000, Save $50,000 and put $25k on your house

 

Invest it 'if you know what you are doing'

If not, find someone to help you... you need to protect yourself against inflation which will make that $130,000 look like $70,000 10 years from now.

Also know the terms, "diversify" and "buy low sell high"

 

You don't know the prices of planes, maintenance, inspections, storage, fuel, fees, and time...

Unless you are a diehard 'flyboy' and it is your life, don't bother with it

I know too many people that got license and bought planes and about a year later, they were saying awwww nuts, screw it!

 

Pay off your mortgage

Take your dream vacation

Save yourself 5,000 to 10,000 for a rainy day

Put the rest in an IRA

 

You have a ton of options. Without knowing your age, principle on mortgage, life left on mortgage, monthly bills, number of members in your family... it's hard to give sound advice, albeit you have already received sound advice on this forum alone. We all hope you have consulted a professional.

That aside, here is my 2 cents.

Assuming the following...
135k is a lot of scratch.
135k will pay off your mortgage.
You ACTUALLY have no other debt (not doubting you, just saying...)

Results are 10 years down the road.

Option A: Hookers and Blow.
Result A: Remember when we blew 135k on hookers and blow? Me neither. It was awesome, though. Too bad I lost the house and toys cuz I lost my job, and the herpes medicine costs a fortune.

Option B: Spend some, invest some.
Result B: Remember that trip to Cancun? Me neither. It was awesome though. Too bad we lost all that cash in the stock market when Obama nationalized everything.

Option C: Pay off the house, be completely debt free.
Result C: Good thing I own this house and have 250k (at least) cash in the bank to buy anything in the whole world I want and not owe anyone anything. Ever. Paid cash for this new 2019 F-150 with 740 HP that gets 320 MPG with the new wind/solar generator installed in the tailgate. (reverse sensors still optional).

It's all your call.

Option A is awefully appealing, though...

 

Edit...
Results are still 10 years down the road.

Option A: Hookers and Blow.
Result A: Remember when we blew 135k on hookers and blow? Me neither. It was awesome, though. Too bad I lost the house and toys cuz I lost my job, and the herpes medicine costs a fortune. Thank God Obama got his health bill passed and I only have to wait 6 to 8 months for my fellow F-150 online members to pay their taxes so I can get the medicine to clear up the ruptures on my junk.

Option B: Spend some, invest some.
Result B: Remember that trip to Cancun? Me neither. It was awesome though. Too bad we lost all that cash in the stock market when Obama nationalized everything. My junk is still itchy though. I should submit (in triplicate) a request for medical assistance for my itchy junk. That chick in Cancun was HOT! Maybe that request will make it to congress this year.

Option C: Pay off the house, be completely debt free.
Result C: Good thing I own this house and have 250k (at least) cash in the bank to buy anything in the whole world I want and not owe anyone anything. Ever. Paid cash for this new 2019 F-150 with 740 HP that gets 320 MPG with the new wind/solar generator installed in the tailgate. (reverse sensors still optional). My private doctor (hired through the black market) cured my itchy junk last week. What a relief! That chick in Cancun was HOT!

 

+1!

I think it's better to invest it in something that will earn you cash after the current cash in your hand is over

 

sleep max...wow

crazy