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Originally Posted by Normal
Late 21-2022 was definitely the best window to borrow any funds for a home purchase or bond. Anyone who wanted to pay off borrowed funds from that time period would be crazy. If you are paying 2-3 percent for a 500 thousand dollar home loan, that same amount in money markets and stocks can earn you about 7% conservatively.
No one I know of would throw that free money away.
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In addition to the interest on the bond there is the yearly admin fee. This may be negligible at the beginning of the payments but drives the effective interest rate up towards the end of the loan.
I could find no money market account with an interest rate above 5%.
The stock market is up this week but may be down next week. Over time it has increased but there is always the risk of a downturn. On the other hand, the interest and admin fee on the bond will always be there.
I paid mine off with no regrets over throwing free money away.
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Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works.
Confirmation bias is real; I can find any number of articles that say so.
Victor, NY - Randallstown, MD - Yakima, WA - Stevensville, MD - Village of Hillsborough
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