SHOULD I RECAST MY MORTGAGE...?
Stats:
3/2 w/176K mortgage
$1,750 payment
25 yrs. left
Chuncking 12K annual via HELOC
My goal is to pay it off in 6 years.
Should I recast my loan? What are the benefits/drawbacks?
@Will Hanner This an analysis of using leverage vs debt free. it is the tenants job to pay off the mortgage. Start to use your calculator and see the power of leverage. Abbreviated example. 1 paid off house $100000 or 5 houses with 20% down. 3% growth 1 house grows to $134000 or 5 houses grow to $670000 in 10 years. What about the mortgage. Mortgage paid down to $65073x5=$325365. Equity=$344365. Like the Capitol One commercial"What's in your wallet". Would your $12000 grand buy an investment property per year. or even one every 2 years.
Originally posted by @Will Hanner:Chuncking 12K annual via HELOC
I can virtually guarantee you that this chunking process on a heloc is costing you more money than if you simply stopped and paid the mortgage directly.
