Proceeds from house sale, pay lumps sum off mortgage or use part of lump sum to upgrade cars

[Kilconleagirl]

Hi all, myself & my husband are trading up house, we have been fortunate to be able to get a mortgage for the new house outside of selling our own house, but we are selling the old house anyway, we are going variable on the new house and once we sell our old house, the proceeds will go against our new house and reduce the mortgage and then fix our rate, anyway we both have been saving hard for the house, hence not upgrading our cars, we r hoping to keep 35k back for 2 car upgrades (20k)and the building of a shed and outside wall (15k) from our sale, the car loan interest rates with the credit union is about 6.9% verses 2.3% on mortgage, just wondering are we better getting seperates loans outside of mortgage or keep our 35k out when putting lump sum against the mortgage?

 

[David1234]

No brainer, pay for upgrades and shed from house proceeds, put balance off new mortgage.

 

[Kilconleagirl]

Thanks david, was thinking the same but another opinion is always good