| Payoff a mortgage or invest in something safe |
|
|
|
|
|
foodeefish
Contributing Member
Cash: $ 6.00
Posts: 26
Joined: 07 Feb 2004
|
| Payoff a mortgage or invest in something safe |
 |
|
Does it make sense to make double mortgage payments to pay off a ten year, 4.75% mortgage in 5 years and then purchase another home, or should I look for a property know. I hear some people say there is no better feeling to sleep at night when you mortgage is paid off. I hear others that say invest the extra money in a couple of index funds.
Thanks
Foodeefish
|
Tue Oct 12, 2004 1:11 am |
|
|
xboxundone
Senior Member
Cash: $ 67.83
Posts: 795
Joined: 19 Sep 2004
|
PAY off your mortgage. You can't get any Guaranteed return of 4.75% from anyone so make the double payments and pay it off!!! Unless you know you can invest the money and get more than 5% return pay off your mortgage.... Not to mention one less monthly bill  I hate monthly bills but it is a part of life 
|
|
Tue Oct 12, 2004 11:27 am |
|
|
BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
|
... but then again, when are you ever going to find rates as low as they are right now?
Xbox makes a good point about not being able to guarantee the rate at 4.75% (probably more like 3.5% after tax deduction), but there are a lot of possible investments that have the potential to throw off much better than that rate over the course of 10 years. All the while, you've got this long-term money locked in at some of the lowest rates in our lifetimes.
Just something to consider...
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
|
|
Mon Oct 18, 2004 3:57 pm |
|
|
|
