tightasadrum
Full time employment: Posting here.
I sure would like some opinions from the financial wizards in this group on paying off a couple of rental investment mortgages.
Here are the facts:
Mortgage #1:
Payoff: $43602.73
Interest rate: 7.875%
Interest cost per day: $9.35
Prin. Paid in august: $118.47
Int. Paid in august: $286.84
Escrow paid in august: $173.87
Rent received: $850.00
Approximately 19 years left on mortgage
Mortgage #2:
Payoff: $44487.95
Interest rate: 8.0%
Interest cost per day: $9.78
Prin. Paid in august: $111.86
Int. paid in august: $296.12
Escrow paid in august: $179.21
Rent received: $725.00
Approximately 19 years left on mortgage
Assume the following:
Federal tax rate: 15%
Maintenance: $50/month
Rent: flat for the foreseeable future
Payoff funds: assume I can earn 5.0% with long-term CD
Questions and comments:
Here are the facts:
Mortgage #1:
Payoff: $43602.73
Interest rate: 7.875%
Interest cost per day: $9.35
Prin. Paid in august: $118.47
Int. Paid in august: $286.84
Escrow paid in august: $173.87
Rent received: $850.00
Approximately 19 years left on mortgage
Mortgage #2:
Payoff: $44487.95
Interest rate: 8.0%
Interest cost per day: $9.78
Prin. Paid in august: $111.86
Int. paid in august: $296.12
Escrow paid in august: $179.21
Rent received: $725.00
Approximately 19 years left on mortgage
Assume the following:
Federal tax rate: 15%
Maintenance: $50/month
Rent: flat for the foreseeable future
Payoff funds: assume I can earn 5.0% with long-term CD
Questions and comments:
- Should I pay them off and spend the increased cash flow as retirement earnings?
- Since the value of the dollar is headed down, the real cost of the mortgages will go down also. Should I consider this in the calculation?
- I plan to defer pension for three more years. This could increase monthly income a little.
- What would you do?