Quote:
Originally Posted by thelegges
We always take the largest mortgage amount, with the smallest down (no points). Then after 60 days paid 50% principal payment. That 6-7% interest money drops in half. Leaving enough interest for the rental write off. Our financial guy alway guided us on how much principal to pay, still keeping liquid money for an issue, yet dropping those high interest amounts to our benefit
Some just can’t have debt, and would rather be cash poor, and no mortgage. Our investments always have made more money than any interest payment
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That is interesting to me, I need to learn more about this, as I have not heard of this but kinda the information I am seeking outside of the norm. Items I don't know, I didn't even know about lol!
So example, correct me if I'm am wrong. Just using the 300K number.
You put enough down, assuming to not pay PMI. So 20% down you paid $60k
$300,000
-$60,000
----------------
$240K (Give or take closing etc rolled in)
Then 60 days later, you dropped $120k into an early payment (should hit principal), then maintain the same monthly payments, but your saving interest dollars and overall dollars based on less interest being accrued on principal. Do I have that correct? (Monthly spending is higher due to monthly mortgage, but savings come from long-term interest accrual being decreased.)
Is my rudimentary response correct? I also cannot take the interest off of the mortgage as it is a second home for tax purposes. I read the fed taxes and it states you can, but didn't dive in totally on the tax rules as there was a maybe in there.
I would only offer it up just to have someone in there on days not there, not necessarily for income. However, it never hurts to have someone pay towards your mortgage in your absence.