Hello All. My wife and I are looking to buy land and build a home sometime next summer. We currently own our existing home with an outstanding Mortage balance of 103K. The house is worth 185-200K as of the current market. We are coming into some money (right around 110k) and we are looking for a little direction.
Our bills:
Credit Cards= 2300$
Vehicle Loan= 24,500$ (worth 37,000$ put a large down when we bought it)
Home Loan= 103K approximately
Assest's/Cash= about 15,000$
Thats about it as far as debt. So, should we pay off the car and house? Obviously we will be selling the current home, so I am just wondering if we should save the liquid cash as a Down for the new place, or pay off what we currently have. Or does it matter? After the dust settles, we will be selling the car as it is too big for our needs now (kids grown). So without paying anything off, and potential equity in the current home we should be around the 200k mark (relative).
Suggestions? I'm assuming pay off at least the credit cards and vehicle loan. Anyway seems a like a few choices are viable I am just wondering from an outsider perspective, which route would you take and why?
Thank you in advance