Which is better, paying off the mortgage of $61,000 or continue paying it off at $850 a month for 14 yrs?

Answer 1

I'm not sure what your interest rate is, but by paying off your mortgage, you'd lose tax relief. You could always refinance your mortgage if you could find a better rate, then lower your monthly payment and still get the writeoff. Depends on your situation. If you have that much money lying around, you might want to contact an investment firm for sound ideas.

Answer 2

You can continue to pay on it for 14 years and end up paying a total of $142,800 . OR you can pay off the $61,000 and be done with it. It will only save you $81,800 in interest by paying it off early. Then you can invest the payment you were making on the property and you collect the interest on it .

Answer 3

Depends on your interest rate. If it will cost you more in interest than the money would earn if it is left in savings or investments, then pay it off. If the money will earn you more invested than if you pay it out now, then make payments. I financed a car when I had the money to pay cash because I got a low enough rate that I could afford to leave my money invested and earn interest at a higher rate. Taxes are also an issue, there will be no deductions available to you if the house is paid off. If your property tax is not rolled into your payment, you will also have to begin to accrue the funds to pay them every year also.

Answer 4

If you refinance the loan your payment would probably decrease your payment and have only 15 years to pay. Refinancing 61K at a 6.625%, your payment would be $365 plus taxes and insurance. If you payoff the loan your going to loss the tax deduction every year! Give me a call if this is an option 909-489-4692 (Frank) or check out my website: http://www.firstmeridiancapital.com

Answer 5

Pay it off.

Then put the "payment" in the bank for 14 years. Let them pay you for the use of your money with your permission of course. Make them explain why they should be allowed access to your money for their investments. Put them throughh the same wringer you went through to get your mortgage. You had to put the house up for collateral. What will they offer.... Then put it where they give the best answer. They will serve you if you let them.