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Originally Posted by asianthree
Things to take into account, if you are looking at investment during high interest.
Your investment advisor is your key voice in your head. Our investment gains are far above 7%.
That said we took largest mortgage on our fourth home @6.25%. 30 days after close started dropping large principal payments. So basically in less than 5 months our interest $$ amount per month is equal or less than a 4.1% mortgage rate. This has always been our mortgage process since the 70s.
Our financial guy will tell us when to stop large principal payments and then use power of OPM.
We bought in TV 2 new spec houses, one preowned, and just built a 4/3 pool home, with $50,000 bond. So four houses, have sold three, not one did we pay off bond. Buyer absorbed the bond.
Our current bond rate is extremely low, and paying off is not in future.
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We were told by several agents not worth paying off bond you will not get it back when selling.
However when you consider the fee for having the bond on top of the interest, at some point think we will pay it off.