Investor · Philadelphia, PA · Member since 2015 · 9 posts · 1 vote
I was wondering, Since the market is so hot in My area, should I use my savings and pay off my house completely. I have a land contract from a private lender and I’m not sure the best way to grow from here. Any help would be appreciated.
I was wondering, Since the market is so hot in My area, should I use my savings and pay off my house completely. I have a land contract from a private lender and I’m not sure the best way to grow from here. Any help would be appreciated.
What are your loan terms and how much equity do you have in the home? If you have a high interest loan then I would consider refinancing. If you have a good rate then enjoy your low interest debt and utilize your money in a better investment.
I was wondering, Since the market is so hot in My area, should I use my savings and pay off my house completely. I have a land contract from a private lender and I’m not sure the best way to grow from here. Any help would be appreciated.
What are your loan terms and how much equity do you have in the home? If you have a high interest loan then I would consider refinancing. If you have a good rate then enjoy your low interest debt and utilize your money in a better investment.
@Forrest Faulconer the interest rate is 3% 60 months in on month 32. Total cost will be 83k and the house is currently worth 180-210k. I cannot refi this is through a old boss of mine. We have a land contract in place. Thankyou for your response!
@Forrest Faulconer the interest rate is 3% 60 months in on month 32. Total cost will be 83k and the house is currently worth 180-210k. I cannot refi this is through a old boss of mine. We have a land contract in place. Thankyou for your response!
You can do a rate term refinance out of the land contract into a conventional mortgage, FHA, or possibly others. Considering you have solid equity in the home that shouldn't be an issue. 3% interest is great, but with that short of a term I imagine you will have a balloon payment at the end of the 60 months for the remainder of the loan. When that happens you will have no choice but to use your savings to pay off your house or refinance.
@Forrest Faulconerno balloon payment he bought the hose for 55k,15k in rehab so my pmi is $1740 per month. After 60 payments the house is mine. After a quick closing.
@Andrew Horan why do you want to pay it off? If you are a flipper, then your savings could be better used to acquire more flips. If the money is just sitting in your bank account earning less than 1% for the next three years, then go ahead and pay it off. Also make sure there is no prepayment penalty, meaning you should save 28 months worth of interest.
@Forrest Faulconerno balloon payment he bought the hose for 55k,15k in rehab so my pmi is $1740 per month. After 60 payments the house is mine. After a quick closing.
The main reason was to eliminate the the $1,740 payment. Then possible refi when the deed is in my hand. But I get what your saying and it makes sense.