Imagine a scenario where your significant other’s aunt has died and left your family with an inheritance of $200,000. Once the papers have been signed and the proper condolences have been passed, you are left with a substantial amount of money in your bank account.
At this point, you may be thinking about mortgage rates and how you can use the money to help lower your mortgage rates or get a better package by placing a substantial down payment on a second home. In any event, below are some smart ways that you can enjoy a financial windfall.
Take a Trip with a Clear Objective in Mind
In the event that the windfall was the result of a death in the family, you may need to take some time off to get away from the sorrow and grief and unwind. However, a smart way to enjoy a financial windfall is to travel with a clear objective that goes beyond simply decompressing.
For example, you can take the time to explore career opportunities in another country, explore different possible business locations, and commiserate with potential clients or business partners while you are overseas. You can even start looking for an affordable place to retire, but that also provides excellent healthcare, engaging recreational activities, and a warm and cordial community.
Pay Off Your Mortgage
By paying off your home, you can begin to explore more career opportunities, or simply have more time and freedom to unwind and enjoy your life. It is also arguably a smart way to “stash” your newly acquired windfall as well, especially if you plan on staying in your home for quite some time. Hence, a smart way to use your windfall is to either pay off your property or accelerate your mortgage.
Renovate Your Home
You can also use your windfall to upgrade your home. That is, you can give your home a makeover, which will not only boost its aesthetics but also increase its curb appeal and real estate value when it comes time to sell it.
For instance, you can add a swimming pool to your backyard, or add a sauna, koi pond, or another such amenity. This will not only help reduce stress but also increase the value of your home.
Create a Nest Egg
By building a nest egg, you will be able to enjoy greater life flexibility down the road, as additional investment capital will pay great dividends in due time. For example, you can invest in some real estate properties or set up a college fund for your children or grandchildren. You could also maximize your retirement contributions or simply set aside your windfall for a money market yield that may develop in the not too distant future.
To learn more smart ways to maximize the value of your windfall or to take advantage of the latest mortgage rates, please visit Northwood Mortgage on our website. We can also be reached at 888-492-3690, should you have any financial inquiries.