Would you pay it off to save on the interest
2006-10-09 01:39:22 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Sorry for the mispelling
2006-10-09 01:40:09 · update #1
If your savings is held in a bank savings account, then the annual interest would be about 2%. A low interest rate bank loan would be around 5%. Therefore, if you paid off your loan with your savings, you would receive an immediate 3% gain on your money.
The only risk is that if you have an emergency and needed that money right away, it is no longer available.
2006-10-09 02:16:03 · answer #1 · answered by Jeff S 3 · 1⤊ 0⤋
It depends on your goals, mind set, influences around you. I keep my homes financed at 70- 80% CLTV interest only loans at that, equity siting in ahome is money your losing interest/leverage on. Most all the good investors keep their property financed. I would suggest the following book(under ($5 on amazon) and then make your decision and find a good financial planner.
Ordinary People, Extraordinary Wealth: The 8 Secrets of How 5,000 Ordinary Americans Became Successful Investors--and How You Can Too by Ric Edelman
2006-10-09 02:32:02 · answer #2 · answered by Dave C 2 · 0⤊ 0⤋
What are you waiting for!!! Yes, pay it off. However, save every penny of what you would have spent on your mortgage payment until you have built up a short term savings. After that, make your long term savings commitment! Debt Free is the way to go!
2006-10-09 01:42:46 · answer #3 · answered by favrd1 4 · 0⤊ 0⤋
No I would not. Plus, the interest is a write off. I'm sure there is a way to run the numbers to see the benefits. Try Intuit (Quicken), they have lots of mortgage calculators.
2006-10-09 01:44:06 · answer #4 · answered by marie 7 · 0⤊ 0⤋