Jill on Money with Jill Schlesinger How to Handle Home Sale Proceeds
5 snips
Feb 10, 2026 Katie, a recent home seller with $265,000 in proceeds, calls in for guidance. She and Jill talk about whether to pay down a new 6.5% mortgage or keep cash. They explore income, investments, timing for retirement, emotional comfort vs liquidity, refinancing prospects, and estate planning. Practical next steps and monitoring options are discussed.
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Keep Cash Readily Available
- Keep proceeds liquid rather than rushing to pay down a mortgage when you have significant cash and other investments.
- Maintain optionality for future career shifts, refinancing, or unexpected needs before locking money into principal.
Caller Bought Dream House With High Rate
- Katie and her husband bought a larger dream house and carry a $508,000 mortgage at 6.5% after selling their prior home.
- They received $265,000 in sale proceeds and have substantial retirement and managed-account balances.
Outcome Depends On Future Returns
- You can't know today whether investing proceeds will outperform paying down a 6.5% mortgage.
- Future investment returns versus interest saved will determine which choice looks smarter in hindsight.