Rtfgrtfg
October 21st 03, 10:43 PM
All
I recently purchased a house at a 5-1 ARM and I plan to refiance once
my credit recovers (1-2 years). I have extra money to invest and not
sure wether to make extra payments on my 5-1 ARM or to put into a CD.
I wanted to know what the opportunity / break even cost are with
making extra mortage payments.
Lets say I fianance 200K at a rate of 10% to make the math easy.
Here are some factors.
-When you pay off debt you do pay taxes so your actual return is
higher.
-There are no commision or set fees with paying off debt.
-I will refiance at a lower rate once my credit so the time period is
a 2 year window.
When you make extra payments to you get a instant return because you
payments are always based off of principle of the loan?
Thanks in advance for you points of view.
Rtfgrtfg77
I recently purchased a house at a 5-1 ARM and I plan to refiance once
my credit recovers (1-2 years). I have extra money to invest and not
sure wether to make extra payments on my 5-1 ARM or to put into a CD.
I wanted to know what the opportunity / break even cost are with
making extra mortage payments.
Lets say I fianance 200K at a rate of 10% to make the math easy.
Here are some factors.
-When you pay off debt you do pay taxes so your actual return is
higher.
-There are no commision or set fees with paying off debt.
-I will refiance at a lower rate once my credit so the time period is
a 2 year window.
When you make extra payments to you get a instant return because you
payments are always based off of principle of the loan?
Thanks in advance for you points of view.
Rtfgrtfg77