i have the money to pay it off,but should i find another way to invest it.
2007-02-24 08:09:02 · 6 answers · asked by george 1 in Business & Finance ➔ Renting & Real Estate
It depends on the interest rate of your mortgage.
My rate is 4.25% so for me it makes no sense whatsoever to pay that off aggressively. (I have a savings account at the same bank paying me a higher interest rate.)
If the mortgage rate is higher than what you can earn through other investing, then it makes sense to pay off the mortgage. Be sure to keep enough emergency cash on hand to deal with vacancy, repairs, maintenance, etc.
2007-02-24 08:49:30 · answer #1 · answered by Vegan 7 · 1⤊ 0⤋
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2016-07-20 10:09:04 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I say pay it off, an be free and clear of the mortgage and the interest. I know some people will say keep the mortgage for the tax break, but is it really worth it to pay $10,000 in interest to the mortgage company in order to keep from paying the government $2500 in taxes (as an example). That's in essence what you do when you have a mortgage for reason alone.
You can rebuild the money you have to invest with because you won't have an additional mortgage payment to worry about.
2007-02-24 08:14:43 · answer #3 · answered by Jen G 5 · 0⤊ 1⤋
It depends on your financial situation and your goals. Remember that payoff of a mortgage means loss of your tax benefits. You may want to discuss an equity transfer or 1031 Tax Deferred exchange. Both of these options can protect your exemptions and can increase your wealth. Remember, there is good debt (leveraged and cash flowing) and bad debt (consumer spending). All debt is not created equal, and I suggest you speak to a tax accountant before making a decision. You may also want to speak with an investing Realtor and a 1031 Exchange service.
2007-02-28 06:46:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Absolutly.........the best move would be to pay off the loan and then if you have the cash every month make that payment to yourself and reap all the benifits of the money instead of feeding the mortage company. That is like getting the intrest paid to you instead of them then invest it as you choose.
2007-02-24 08:51:53 · answer #5 · answered by fred b 2 · 0⤊ 1⤋
Rent To Own Homes : http://RentToOwnHome.uzaev.com/?SeEg
2016-07-12 06:00:53 · answer #6 · answered by ? 3 · 0⤊ 0⤋