Pay off second mortgage before selling home?
I had posted this on another thread but later realized it was not
completely related to it (didn't mean to hijack the origional thread),
so I am reposting it as a new thread...
Is it better or wiser to continue to make extra payments on a 2nd
mortgage until it's paid off or, instead, make the minimum payments and
try to pay
it off whenever the home is sold?
In my case, I'm 58 y/o, plan to work another 8 to 10 years, and
currently owe about 50% of the max available loan. I send
them $1,000 monthly instead of the min. $225 required in monthy
payments.
So, I can either continue to make the $1,000 monthly payments and pay
the loan off in 3 more years -- or -- I can send the $225 minimum
payment, keep the $775 for something else, and close out the loan
balance whenever I sell
my home.
Which is wiser?
- What is the interest rate on the second mortgage? If it is well below the
rate of return for your timeframe that you expect from alternative
investments (like stocks or bonds), then strictly numerical, rational
decision-making says to pay the m