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re: Another question regarding paying down your mortgage...
Posted on 10/6/12 at 11:26 am to jguidroz
Posted on 10/6/12 at 11:26 am to jguidroz
quote:
The better question is, could you earn more money investing that extra principal payment over 30 years vs putting it towards your mortgage to save on interest?
Yes, paying extra does get you some but at today's rates it's only 2.5% or so after tax. Why lock up your money for many years at that rate, especially if inflation goes up at all?
Historically this was a good idea, b/c rates were higher. If you had a 6.5% note instead then it would be much more worth it. That would be a guaranteed 5% after-tax return, that's actually not bad. But today's rates are so it just isn't worth it.
1
Posted on 10/7/12 at 11:58 am to foshizzle
quote:
If you had a 6.5% note instead then it would be much more worth it.
mine was 7.5% when financed back in 1993.
another reason i paid it off waaaaaaay early.
I listed all the other reasons in a previous thread. Different circumstances for different people. lots of Hard times(gets very old indeed), not a huge principal amount left on mortgage, and the high interest rate are great reasons to pay it off soon for peace of mind.
EDIT: but i digress, we have posters here who supposedly know exactly what each person should do and their exact situation and as if they will have no troubles from here on out in life. sigh.
This post was edited on 10/7/12 at 5:22 pm
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