- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Mortgage/Refinancing question
Posted on 4/14/10 at 11:07 pm to foshizzle
Posted on 4/14/10 at 11:07 pm to foshizzle
quote:
With rates as low as they are, why pay it off early?
It amazes me how many differing opinions people give on this subject. You are getting back 3-5% by paying it off early. Whats not to like about that? Better than any savings or most cds.
2
Posted on 4/15/10 at 7:32 am to C
Work the positive spread...current interest rates less tax deductions are what, 2-4%? If one cannot earn greater than 2-4% over the next 30-years by investing it, God help us all.
Take the difference in house note between the 15 and 30 yr term and invest it. I don't have a crystal ball, but I am betting a 9% return is feasible over 30-yrs. That is 9 - 4% = 5% net return.
Of course, piece of mind for owning your home sooner is important for some people. However, the way I look at it, piece of mind costs me 5%. Do the math. That ain't Burger King cost. That is Ferrari cost.
Take the difference in house note between the 15 and 30 yr term and invest it. I don't have a crystal ball, but I am betting a 9% return is feasible over 30-yrs. That is 9 - 4% = 5% net return.
Of course, piece of mind for owning your home sooner is important for some people. However, the way I look at it, piece of mind costs me 5%. Do the math. That ain't Burger King cost. That is Ferrari cost.
Posted on 4/15/10 at 7:45 am to C
quote:
You are getting back 3-5% by paying it off early. Whats not to like about that? Better than any savings or most cds.
A CD is not the right comparison. A mortgage is (in this case anyway) a 30 year investment. You should therefore compare with a 30 year investment in a diversified portfolio in a tax-advantaged account.
You don't compare with a 1 year CD unless you are borrowing at 1 year terms.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News