Wife4Life asked:
I inheirtied a house with an adjustable rate mortgage. The loan when I took it over was $80,000 when I took it over 3 years ago. The rate right now is somewhere near 6%, I want to pay it off asap so the rate doesn’t go up and so I can use the extra money that would have been a loan payment for a baby instead.
I inheirtied a house with an adjustable rate mortgage. The loan when I took it over was $80,000 when I took it over 3 years ago. The rate right now is somewhere near 6%, I want to pay it off asap so the rate doesn’t go up and so I can use the extra money that would have been a loan payment for a baby instead.
I have been paying an extra $1000 a month on top of the loan amount due.
I recently sent $14,000 (from my savings) towards my balance and now the mortgage is at $33,000 and I am going to be sending payments of about $2700 a month to pay it off in a year.
A friend of mine is telling me not to pay it off and just keep making payments since its the best solution.
I am paying like $150 in interest every month that will be staying in my pocket once its paid off, I don’t get what my solution isn’t the best.
The tax write off isn’t really worth it, is it?
RANDY