Building a new home

[Rick Oaks]

We sold our house. We now have 400k to use to build new house that will cost approx 600k.

With low rates should we get a loan for 80% and invest the difference or use the 400k to pay building costs?

[Ben Rodriguez]

@Rick Oaks

In my limited experience, even with a new construction, it wouldn't hurt to put some aside just in case. With how volatile the world has become, even if you just put it in a mixture of high interest savings or roth IRA, you'll still have access to those funds and they can make you some money at the same time. Perhaps just get a loan for half of the building costs and pay off the rest to give you a modest mortgage which could probably be refinanced in a couple of years to bring it down even further. Hope this helps.