Comments on: Should I Prepay My Mortgage or Invest the Money? http://blog.equifax.com/real-estate/should-i-prepay-my-mortgage-or-invest-the-money/ Fri, 17 May 2013 00:53:39 +0000 hourly 1 http://wordpress.org/?v=3.5 By: Linda http://blog.equifax.com/real-estate/should-i-prepay-my-mortgage-or-invest-the-money/#comment-17935 Linda Wed, 24 Apr 2013 21:08:39 +0000 http://blog.equifax.com/?p=4734#comment-17935 We have an interest rate of 3.9% and owe $49,000 on our home. Since we are 67 years old, we wanted to have the home paid off by the time we are 70, so we have been paying $500.00 extra each month. Since my husband has a small business and we could use more savings for retirement, we are thinking of setting up a 401k for him as the only employee of his company. Should we discontinue payment the $500.00 extra a month on the house and put in the 401K. The house will still be paid for in about 5 years if we just make the monthly payment. As I write this, I think you will say it is a no brainer to invest.

]]> By: none http://blog.equifax.com/real-estate/should-i-prepay-my-mortgage-or-invest-the-money/#comment-16607 none Fri, 29 Mar 2013 15:08:57 +0000 http://blog.equifax.com/?p=4734#comment-16607 I am in the same position with a rental. We have good tenants and good rents, but the taxes, maintenance and other costs have us at a consistent break-even or loss. We kept the house because we bought in 05 during a huge bubble and overpaid, and figured we wanted to at least get a little over what we paid for it. I would hope for $15K over original purchase price at this point, but might not get it.

I would advise the previous commenter to find out what a likely sale price would be on the house and make the improvements as suggested. We will be continuing our improvements and likely try to sell—but if we can’t, we will rent again. We want to sell at this point because we are looking to simplify our lives and are tired of every penny going to this rental or to paying off its mortgage, with nothing left for us to enjoy in our lives–not even going out to dinner–because we hate having 2 mortgages and want to get rid of one. So it is a personal choice as well.

]]> By: EFX Moderator, EM http://blog.equifax.com/real-estate/should-i-prepay-my-mortgage-or-invest-the-money/#comment-15783 EFX Moderator, EM Mon, 18 Feb 2013 21:54:22 +0000 http://blog.equifax.com/?p=4734#comment-15783 I’m sorry to hear about your situation. There’s some good news to take from this though. You’re almost done paying the mortgage, which is a great accomplishment, and it is currently being rented. Unfortunately, it’s hard to know what would be the best outcome for you. I recommend talking to a real estate agent about how much the likely selling price of the property would be. You could ask if any improvements to the home could make it more attractive to buyers. These same improvements could also make it more attractive to renters.

It sounds like you should figure out the true costs of either continuing to rent it out or selling, and chose which makes the most sense for you.

Please let us know what you decide. Thanks for posting.

]]> By: rock and hard place http://blog.equifax.com/real-estate/should-i-prepay-my-mortgage-or-invest-the-money/#comment-15729 rock and hard place Sat, 16 Feb 2013 16:30:19 +0000 http://blog.equifax.com/?p=4734#comment-15729 I own a home in a bad neighborhood (poor schools and rock bottom property values). However, I only owe 27K left on the home. I am currently renting it. Unfortunately, it is only yielding low-income renters.
I know its not a lot of information, but should I sell and salvage what little I can, or should I continue renting out (eventhough it is less than ideal tenants?

]]> By: EFX Moderator, EM http://blog.equifax.com/real-estate/should-i-prepay-my-mortgage-or-invest-the-money/#comment-15688 EFX Moderator, EM Thu, 14 Feb 2013 21:58:59 +0000 http://blog.equifax.com/?p=4734#comment-15688 Sam, I’m sorry to hear your home has gone down in value. Like any investment, there are gains and losses, ups and downs. In most areas, the real estate market is turning around but it takes time. If you are considering a short sale or walking away from your home, you could read our blog about Making the Best of a Short Sale. I wish you the best and thanks for posting.

]]> By: Sam http://blog.equifax.com/real-estate/should-i-prepay-my-mortgage-or-invest-the-money/#comment-15666 Sam Thu, 14 Feb 2013 15:57:13 +0000 http://blog.equifax.com/?p=4734#comment-15666 The problem with me is the value of my home has declined more than $ 900,000 since 2006, and I am upside down by more than $250,000.00 on the payoff. The real problem is , WHAT IS THE VALUE OF THE HOME? I am considering “walking away” since a short sale is a joke!!!!!!!!!!!!!

The investment is currently paying 4.55%- 5.2% yield , REAL Estate is a Liability not an Asset. Just purchased a home for cash , and will live with the idea of just paying the taxes, and related expenses plus maintenance down the road. Its a place to ” Rest”, not an investment. If it is an investment, its a poor one.

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