You are here:
- Home
- Real Estate
- Banking: U.S.
- Financing -- Loans
- loan pay-off
Financing -- Loans/loan pay-off
Advertisement
Question
I have a loan balance of $680,000. Payments are twice per year with 2.5 years (5 payments) remaining. interest rate is 4.25%. I have the money to pay off or could refinance same term @ 1.5%. I can invest @ 3.5%. What's my best option?
Myself, I would stay liquid and keep the note outstanding.
4.25% is a good rate. There are bargains galore right now in the real estate market. Banks are not lending. Toady, a bank might not even loan you the money that you already have outstanding against your property, as wierd as that sounds.
Cash is now king again.
Related Articles
- Types of Mortgages - Personal Finance in Your 20s and 30s
- Fixed Rate Investor Mortgage Loans - Investor Mortgage Loans at Fixed Rates
- Taking out a Business Loan - Reasons for a Small Business to get a Business Loan - Bank Loan
- Loan Modification or Short Sale - Should I Do a Loan Modification or a Short Sale?
- Should I Refinance?
Financing -- Loans
Answers by Expert:
Finance Guy
Expertise
1. All questions relating to finance 2. All practical aspects of mergers and acquisitions 3. Many general business questions
Experience
Considerable experience in the area consisting of 25 years in both consumer and commercial finance and business management, including 15 years specializing in international Mergers and Acquisitions with over $100 billion in assets acquired Education/Credentials Business administration undergrad Wharton post grad in finance Awards and Honors numerous corporate awards Past/Present clients range from small enterprenurial companies to large multinationals
©2012 About.com, a part of The New York Times Company. All rights reserved.