Financing -- Loans/House vs. Investment?
I owe approximately $90,000 on a condo I recently bought at 2.5 % interest, 30 year fixed rate. I am in a position to reduce the principal by $8,000 immediately or invest elsewhere.
Which would be the wiser choice and why?
I would invest somewhere else and not put it on my mortgage. What I would do in regard to the mortgage is; take your payment and divide it by 12 and take that number plus $50 and apply it to your mortgage principal every month. If you do that you will pay off your mortgage approximately 7 years faster.
Sr. Loan Officer