we have a condo in DC.mortgage is 2,5k.our tenant is also paying 2,5k.we thinking of overpaying another 2,5k the mortgage or saving for a 1y then buy new condo?
Since our tenant is paying our mortgage, im not sure its worth overpaying it.
what does it change if my house is paid in 10years instead of 15years since our tenant will be the one paying it anyway?
my wife and i dont know what to do. can you guys advice please?
@Karl Barandereka It depends on you and your wife. Some people don't like debt, so they pay their mortgage down faster. Others may pay it down faster because their income to debt ratio is maxed out and they need to pay it down before they can buy another place. Others keep the equity in the homes low and use it to buy more homes.
If your goal is to buy another place, then I'd suggest saving the money for a down payment. Mortgage rates are really low right now, so take advantage of it and the tenant paying for your mortgage.
Originally posted by @Theresa Harris: thank you very much Theresa Harris, this helps a lot.
@Karl Barandereka It depends on you and your wife. Some people don't like debt, so they pay their mortgage down faster. Others may pay it down faster because their income to debt ratio is maxed out and they need to pay it down before they can buy another place. Others keep the equity in the homes low and use it to buy more homes.
If your goal is to buy another place, then I'd suggest saving the money for a down payment. Mortgage rates are really low right now, so take advantage of it and the tenant paying for your mortgage.