It is 3 ...

Posted by Bob Janova at 2:08pm Sep 21 '12
You must sign in to send Bob Janova a message
... if you assume there aren't extra conditions, early payment penalties etc, then the fact it's split into two is entirely irrelevant so where you choose to put the extra money can't matter.

Proof: you can think of the entire balance as 236,000 $1 mortgages. If there are no extra fees attached then all 236,000 of those are equivalent. Therefore paying off any 50 of them is equivalent to any other 50.

Also, remember that if you can invest that $20 anywhere that you get better than 4.375% net (probably about 6% gross, if you pay income tax), that's a better use of it.
There are 14 private posts in this thread. You need to sign in to read them.

Below are the public posts you may view:

You currently have read-only access to this board. You must request an account to join the conversation.

Why Join 4thKingdom?

Note that there are no ads here. Just intelligent and friendly conversation. We keep the spam out, the trolls out, the advertisers out… 4K is just a low-key, old-fashioned site with members from around the world.
This community began in 1998, and we continue to accept new members today.

Hot Discussion Topics: