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What would you do??

Anonymous
Posted by Anonymous
  • 16 Replies
So in the next 6 months, my dh will be laid off due to his company closing. When that hapoens he will be getting around $50000 lump sum and collecting about $540/week for unemployment. We will be driving across country, east coast to the west. We've been slowly shedding alot of our big items so we're not spending a ton to ship.
We have a house already with a mortgage of $750/month. And I will be getting a job immediately. Home health care.
My dh thinks we should put a majority of the $50000 on the priciple of the house to bring down the monthly payments. I feel like we should put down some, but also set a chunk aside in case it takes him a while to get a job. What would you do?
Posted by Anonymous on Jan. 6, 2015 at 11:36 PM
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Replies (1-10):
bluebunnybabe
by kid crack dealer on Jan. 6, 2015 at 11:40 PM
I would set it aside until you both have full time jobs & can see what your income will be. Then I would pay off any other debts. Then I would max out a roth if you don't already & then throw some on the house.
The 50K isn't from retirement, is it? If so, you should do none of that & roll it in to another retirement account or you'll have crazy penalties. Also, make sure you set aside plenty for taxes if it isn't taxed.
KirWasHere
by Member on Jan. 6, 2015 at 11:41 PM
I am happy for you. I say sink it all in.
Anonymous
by Anonymous 1 - Original Poster on Jan. 6, 2015 at 11:41 PM
Nope, severance

Quoting bluebunnybabe: I would set it aside until you both have full time jobs & can see what your income will be. Then I would pay off any other debts. Then I would max out a roth if you don't already & then throw some on the house.
The 50K isn't from retirement, is it? If so, you should do none of that & roll it in to another retirement account or you'll have crazy penalties. Also, make sure you set aside plenty for taxes if it isn't taxed.
Anonymous
by Anonymous 2 on Jan. 6, 2015 at 11:42 PM
I would hold onto the money until you are both settled in new jobs.
Anonymous
by Anonymous 1 - Original Poster on Jan. 6, 2015 at 11:43 PM
That's my thinking. He thinks by putting a chunk down on the priciple would lower payments making everything else easier. (Paying less each month for mortgage)

Quoting Anonymous 2: I would hold onto the money until you are both settled in new jobs.
bluebunnybabe
by kid crack dealer on Jan. 6, 2015 at 11:44 PM
Ah, just checking. You still want to make sure to set some of that aside because if he receives the 50K, even if they tax it, if you both work full time for the year you could get stuck with some taxes still due with the higher income. Good luck with everything! :)

Quoting Anonymous 1: Nope, severance

Quoting bluebunnybabe: I would set it aside until you both have full time jobs & can see what your income will be. Then I would pay off any other debts. Then I would max out a roth if you don't already & then throw some on the house.
The 50K isn't from retirement, is it? If so, you should do none of that & roll it in to another retirement account or you'll have crazy penalties. Also, make sure you set aside plenty for taxes if it isn't taxed.
Anonymous
by Anonymous 1 - Original Poster on Jan. 6, 2015 at 11:45 PM
1 mom liked this
Thanks!

Quoting bluebunnybabe: Ah, just checking. You still want to make sure to set some of that aside because if he receives the 50K, even if they tax it, if you both work full time for the year you could get stuck with some taxes still due with the higher income. Good luck with everything! :)

Quoting Anonymous 1: Nope, severance

Quoting bluebunnybabe: I would set it aside until you both have full time jobs & can see what your income will be. Then I would pay off any other debts. Then I would max out a roth if you don't already & then throw some on the house.
The 50K isn't from retirement, is it? If so, you should do none of that & roll it in to another retirement account or you'll have crazy penalties. Also, make sure you set aside plenty for taxes if it isn't taxed.
bluebunnybabe
by kid crack dealer on Jan. 6, 2015 at 11:46 PM
When you pay a lump sum on a mortgage, it doesn't normally lower your payment. Generally it would only do that if you refinance it.

Quoting Anonymous 1: That's my thinking. He thinks by putting a chunk down on the priciple would lower payments making everything else easier. (Paying less each month for mortgage)
Quoting Anonymous 2: I would hold onto the money until you are both settled in new jobs.
AppleJaxx
by Silver Member on Jan. 6, 2015 at 11:47 PM
Definitely save it. That's 5 years or so of mortgage payments alone. That would be a nice fund to live off of while he's trying to find a job. if there is deby to be paid off pay off as much as you can, while still leaving enough money in your emergency fund in case it takes time for him and you to find a job.

Do you have any other savings?
Anonymous
by Anonymous 3 on Jan. 6, 2015 at 11:48 PM
1 mom liked this
I would put half down towards the principle and put half aside. Even if you put down a big chunk towards the principle, you will still have a monthly ppayment.
Once we were settled and could start putting more money into savings i would start making extra payments towards the principle.
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