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Old Apr 18, 2013 | 07:09 PM
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onehundred80
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From: Ontario
Default Re: Best Mod EVER...

Originally Posted by West Peterson
That certainly made sense when home mortgage interest rates were way up around 12-14% like they were when I bought my first house. But at 2.75%, there's not much sense in paying it off early if there's the possibility of having to finance anything else down the road... such as children's college education, new car, new garage, etc. If cash is flush, and there's no need for future financing, then certainly it makes sense to pay if off. However, one good thing about having a low-interest mortgage is that it helps your credit score.
Also, keep in mind the interest on a mortgage is tax deductible, but the car loan interest is not.
That is taking a short term view, should the rates double and they will,it will be harder to pay down the debt as your payments will go up by 30% and the interest paid more than doubled.
At that time you will wish you had paid some or all of it off.
 
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