Selling my home and upgrading in 1yr - How do I invest cash in the mean time?

[AKSuited]

I currently have a 30yr loan @ 5% with 120,000 remaining on the loan. I have no other debt, and a bit over 60,000 to invest now. I plan to sell my home in less then 1yr and upgrade. I have been weighing options, but I can not decide how to invest my money now to be in the best position to buy my new home after sale of my current one.

I have thought about refinancing to 1yr ARM or ARM-IO, but that doesn't seem worth it. I have considered paying the $60k to my current loan as well as conventional investments such as CDs, funds, or stocks. Knowing I do not need the money now, and that I plan to sell my home before the purchase of my new home, how can I make the most of my available money?

[disneysteve]

Welcome. I want to be clear. Will you need the 60K toward the purchase of your next home? If so, you need to keep it somewhere safe - money market or CD. No stocks or stock mutual funds with only a 1-year timeline.

I would not pay it toward your current loan. Keep it liquid so it is ready when you need it.

I would also not do any type of refi of the current loan. You won't save enough in 1 year to make it worthwhile.