Quote:
Originally Posted by rhood
Anyone with a mortgage who does not have an escrow account who pays their taxes and insurance yearly. I am thinking I could put the escrow amount onto the mortgage principle every month and then just pay the taxes and insurance when they are due, thus paying the mortgage off in just a few years. Any comments? Thanks
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I think it depends on your goals and also can you earn I better return on your money elsewhere? For example if you are paying 4% interest on your mortgage do you have an investment that pays you more than 4%? if you do it may make a better investment choice to invest in the higher rate of return. Will you need access in the future to the extra cash you are investing in your home? if so you will either need to re-fi, take a second or sell to increase your liquidity. Of course you have to take your goals, tax impact, cash flow and liquidity needs in mind. Only you know whats best for you