Updated over 3 years ago on . Most recent reply
Paying off a Mortage Question
Ok I'm being told that paying off a mortgage with a low interest is not a sound business move. I accept/believe the concept but I don't understand the concept. If I have a loan at 3% and current mortgages are 5%. Why is paying off the loan not a good idea?
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Joe Villeneuve
#5 All Forums Contributor
Pro Member
#5 All Forums Contributor
- Plymouth, MI
If you have positive CF, then your tenant is the one that's paying your mortgage for you. If you take your money to pay it off (that includes the positive CF), you are the one that's paying for the property. The entire cost of a property to a REI is only the cash that comes out of their pocket...so don't add more to it if your don't have to.