Talk of The Villages Florida - View Single Post - Bond Payoff
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Old 03-11-2017, 03:40 PM
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Quote:
Originally Posted by golfing eagles View Post
I hope you see the huge difference between mortgaging a property you already own to put it in the market for 30 years and deciding whether or not to pay off a NEWLY INCURRED expense of a bond. A $500,000 mortgage, 30 years at 4% will cost you about $2400/month, so you would needs steady up years just to generate the cash flow to cover that. A $25,000 bond at 6% for 30 years costs $150/ month, so you are comparing apples and oranges
If you choose to use as an example a huge mortgage then, of course, the numbers will be unsupportable.