Pay off Mortgage - performing mortgage

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
funeshah
Posts: 46
Joined: Thu Aug 28, 2014 11:05 am

Pay off Mortgage - performing mortgage

Post by funeshah » Wed Nov 28, 2018 4:54 pm

Hi all -

I have an investment property (rental) with a market value of approx $60k. This was my first investment property (I have others now), and so purchased this with a mortgage to leverage other $.

That said, I have a mortgage balance of $32k (~4.75% rate) now, and the property is cash-flow positive. I don't expect the property to appreciate much, but I expect it to hold value and rental prices to slowly increase.

I'd like to explore the possibility with the bank to pay off my loan early. I have Cash aside in savings....
i.e. Will the bank negotiate a lower "pay off the mortgage now" price? Has anyone been successful in this?

Thoughts/feedback would be appreciated.. This is slightly different than "should I pay off my mortgage now?", and is more of a "will a bank negotiate a Mortgage Pay-off, for a performing note?

alex_686
Posts: 5151
Joined: Mon Feb 09, 2015 2:39 pm

Re: Pay off Mortgage - performing mortgage

Post by alex_686 » Wed Nov 28, 2018 5:01 pm

I am not sure what you mean when you say "will a bank negotiate a Mortgage Pay-off, for a performing note".

Most mortgages have no pre-pay penalty. You just pay it off, in part or in whole. Or maybe your mortgage has a prepayment penalty. Read read the contract (a.k.a. mortgage) you signed - it should all be in there.

I can't think of any reason why a bank would deviate from that mortgage contract language. There are few to no upsides and lots of downsides for them.

Thegame14
Posts: 1350
Joined: Mon May 07, 2018 11:53 am

Re: Pay off Mortgage - performing mortgage

Post by Thegame14 » Wed Nov 28, 2018 5:07 pm

HUH?? I hope you don't mean that you think the bank will take less money than owed to pay it off now. Already paying it off now is a loss for them as they lose the future interest payments, so to think then they will also take a principal loss, no idea what to say other than never heard of anyone even thinking of that never mind actually getting it.

Unless I am wrong you owe $32K on the loan, but think you can negotiate something like if I pay it off now, will the bank take $30K instead of the $32K that you legally owe and they have a lean on with a property worth $60K??? I really hope this isn't what you are thinking....

pdavi21
Posts: 1296
Joined: Sat Jan 30, 2016 4:04 pm

Re: Pay off Mortgage - performing mortgage

Post by pdavi21 » Wed Nov 28, 2018 5:12 pm

If your mortgage is underwater, they might consider, although probably not considering you have the cash on hand.
It's not, so here's what happens: they say pay what you owe or we will take the house and the 28k+ you already gave us and sell the house for 32k.

Even so, it wouldn't hurt to ask them for a discount to pay off the balance. Chances are your mortgage is going to be worth less as rates are currently rising, so the business case is there.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking

User avatar
JoeRetire
Posts: 4447
Joined: Tue Jan 16, 2018 2:44 pm

Re: Pay off Mortgage - performing mortgage

Post by JoeRetire » Wed Nov 28, 2018 5:17 pm

funeshah wrote:
Wed Nov 28, 2018 4:54 pm
Will the bank negotiate a lower "pay off the mortgage now" price?
What would be the bank's motivation in accepting less?
Very Stable Genius

noco-hawkeye
Posts: 432
Joined: Sat Aug 16, 2014 8:20 am

Re: Pay off Mortgage - performing mortgage

Post by noco-hawkeye » Wed Nov 28, 2018 5:19 pm

pdavi21 wrote:
Wed Nov 28, 2018 5:12 pm
... Even so, it wouldn't hurt to ask them for a discount to pay off the balance. Chances are your mortgage is going to be worth less as rates are currently rising, so the business case is there.

I don't understand this logic. If you pay it off today (according to terms) you limit the amount of interest you pay. If you string out the payments for X years you will pay more in interest.

So you think that if you pay it off today that the bank would take even less than what they have agreed to take?

pdavi21
Posts: 1296
Joined: Sat Jan 30, 2016 4:04 pm

Re: Pay off Mortgage - performing mortgage

Post by pdavi21 » Wed Nov 28, 2018 5:27 pm

noco-hawkeye wrote:
Wed Nov 28, 2018 5:19 pm
pdavi21 wrote:
Wed Nov 28, 2018 5:12 pm
... Even so, it wouldn't hurt to ask them for a discount to pay off the balance. Chances are your mortgage is going to be worth less as rates are currently rising, so the business case is there.

I don't understand this logic. If you pay it off today (according to terms) you limit the amount of interest you pay. If you string out the payments for X years you will pay more in interest.

So you think that if you pay it off today that the bank would take even less than what they have agreed to take?
The banks often sell your mortgage many times. They will sell it like a bond. If your rate is 3% on a 15 year, and the current rate is 4.5%, the bank would be (potentially) selling your 32k loan for a 22.5% discount for 24.8k to another bank. I may have done the Math wrong somewhere, but the idea should make sense.

EDIT: AND WHY SELL? To finance a 24.8k mortgage at 4.5% and make the same NPV. Now you see?
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking

alex_686
Posts: 5151
Joined: Mon Feb 09, 2015 2:39 pm

Re: Pay off Mortgage - performing mortgage

Post by alex_686 » Wed Nov 28, 2018 5:44 pm

pdavi21 wrote:
Wed Nov 28, 2018 5:27 pm
The banks often sell your mortgage many times. They will sell it like a bond. If your rate is 3% on a 15 year, and the current rate is 4.5%, the bank would be (potentially) selling your 32k loan for a 22.5% discount for 24.8k to another bank. I may have done the Math wrong somewhere, but the idea should make sense.

EDIT: AND WHY SELL? To finance a 24.8k mortgage at 4.5% and make the same NPV. Now you see?
Well, kind of. This is not how things actually work. First, you math is a bit off. On your example, 32k mortgage, rates go from 3% to 4.5%, the difference is about 4k or 10%. I am getting 28.8k.

If this was for a large loan which had not been secularized and we had seen a big spike in rates maybe. However there is enough stuff on the ground that makes doing this stuff complex and expensive for a bank to do. For example, most banks would have already paid a fee to hedge interest rate risks, so they would be indifferent. For such a tinny loan I would not imagine any bank doing this.

Topic Author
funeshah
Posts: 46
Joined: Thu Aug 28, 2014 11:05 am

Re: Pay off Mortgage - performing mortgage

Post by funeshah » Wed Nov 28, 2018 10:15 pm

JoeRetire wrote:
Wed Nov 28, 2018 5:17 pm
funeshah wrote:
Wed Nov 28, 2018 4:54 pm
Will the bank negotiate a lower "pay off the mortgage now" price?
What would be the bank's motivation in accepting less?
NPV (cash in hand now, rather than wait for the durTion of the loan)

Since banks do sell loans - can’t I somehow convince them to sell the loan to me, at a discount? I don’t know how to go about doing that - since they typically bulk sell them

User avatar
JoeRetire
Posts: 4447
Joined: Tue Jan 16, 2018 2:44 pm

Re: Pay off Mortgage - performing mortgage

Post by JoeRetire » Thu Nov 29, 2018 7:52 am

funeshah wrote:
Wed Nov 28, 2018 10:15 pm
Since banks do sell loans - can’t I somehow convince them to sell the loan to me, at a discount? I don’t know how to go about doing that - since they typically bulk sell them
You could try. Good luck with that.
Very Stable Genius

vested1
Posts: 1876
Joined: Wed Jan 04, 2012 4:20 pm

Re: Pay off Mortgage - performing mortgage

Post by vested1 » Thu Nov 29, 2018 9:12 am

funeshah wrote:
Wed Nov 28, 2018 10:15 pm

Since banks do sell loans - can’t I somehow convince them to sell the loan to me, at a discount? I don’t know how to go about doing that - since they typically bulk sell them
I'd like to be a fly on the wall for that conversation. Why don't you skip the middleman and loan it to yourself? :twisted:

BogleMe
Posts: 257
Joined: Sat Mar 13, 2010 8:10 pm

Re: Pay off Mortgage - performing mortgage

Post by BogleMe » Thu Nov 29, 2018 9:15 am

funeshah wrote:
Wed Nov 28, 2018 10:15 pm
JoeRetire wrote:
Wed Nov 28, 2018 5:17 pm
funeshah wrote:
Wed Nov 28, 2018 4:54 pm
Will the bank negotiate a lower "pay off the mortgage now" price?
What would be the bank's motivation in accepting less?
NPV (cash in hand now, rather than wait for the durTion of the loan)

Since banks do sell loans - can’t I somehow convince them to sell the loan to me, at a discount? I don’t know how to go about doing that - since they typically bulk sell them
You will go nowhere with this. Your loan is inconsequential to the bank unless you are dealing with some super tiny bank with about $500,000 in assets. Moreover, a 4.75% rate is not bad from the Bank's perspective and they are still making money at this pricing, so they would have zero interest in your suggestion.
Last edited by BogleMe on Thu Nov 29, 2018 9:21 am, edited 6 times in total.

Thegame14
Posts: 1350
Joined: Mon May 07, 2018 11:53 am

Re: Pay off Mortgage - performing mortgage

Post by Thegame14 » Thu Nov 29, 2018 9:16 am

We should all do this with our mortgages each year I will offer to pay them 90% of my outstanding balance and pay for it with a loan from another bank. I will do this every year and save 20-30K per year.

I will also do it while riding a unicorn, searching for the pot of gold at the end of the rainbow..... This guy cant really be serious..... I hope.... :oops:

jminv
Posts: 1016
Joined: Tue Jan 02, 2018 10:58 pm

Re: Pay off Mortgage - performing mortgage

Post by jminv » Thu Nov 29, 2018 9:38 am

funeshah wrote:
Wed Nov 28, 2018 4:54 pm

I'd like to explore the possibility with the bank to pay off my loan early. I have Cash aside in savings....
i.e. Will the bank negotiate a lower "pay off the mortgage now" price? Has anyone been successful in this?

Thoughts/feedback would be appreciated.. This is slightly different than "should I pay off my mortgage now?", and is more of a "will a bank negotiate a Mortgage Pay-off, for a performing note?
Why would a bank take a haircut on a property that has a 53.3% LTV ie there's enough equity in the house that there's no way they'd lose money if they had to take control - even if it became non-performing? It would also never become non-performing since you have so much equity in it. There would be literally no reason for the bank to make a deal and it's unlikely they still have the loan on their books anyway. Don't bother asking. You could instead ask them for a preferential rate on a new loan since you do all your business with them, etc. I personally wouldn't pay of the mortgage earlier, either, just keep it. Buy the next door unit and ask the bank for another loan for the rest.

Grt2bOutdoors
Posts: 21740
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Pay off Mortgage - performing mortgage

Post by Grt2bOutdoors » Thu Nov 29, 2018 10:03 am

Thegame14 wrote:
Thu Nov 29, 2018 9:16 am
We should all do this with our mortgages each year I will offer to pay them 90% of my outstanding balance and pay for it with a loan from another bank. I will do this every year and save 20-30K per year.

I will also do it while riding a unicorn, searching for the pot of gold at the end of the rainbow..... This guy cant really be serious..... I hope.... :oops:
It’s obviously the OP’s first ride at the mortgage rodeo. For a $32k face value mortgage held at a bank that is holding hundreds of millions of not more in MBS, why would the underlying investor agree to take a discount, especially for a fixed income instrument that is secured with a low LTV property? OP - you can ask, but it’s highly highly likely the answer will be “NO”. You aren’t buying back a large volume of securities and mortgage payoffs require a little bit of work for the bank, plus 4.75% is a good yield for them in today’s market.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Grt2bOutdoors
Posts: 21740
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Pay off Mortgage - performing mortgage

Post by Grt2bOutdoors » Thu Nov 29, 2018 10:04 am

BogleMe wrote:
Thu Nov 29, 2018 9:15 am
funeshah wrote:
Wed Nov 28, 2018 10:15 pm
JoeRetire wrote:
Wed Nov 28, 2018 5:17 pm
funeshah wrote:
Wed Nov 28, 2018 4:54 pm
Will the bank negotiate a lower "pay off the mortgage now" price?
What would be the bank's motivation in accepting less?
NPV (cash in hand now, rather than wait for the durTion of the loan)

Since banks do sell loans - can’t I somehow convince them to sell the loan to me, at a discount? I don’t know how to go about doing that - since they typically bulk sell them
You will go nowhere with this. Your loan is inconsequential to the bank unless you are dealing with some super tiny bank with about $500,000 in assets. Moreover, a 4.75% rate is not bad from the Bank's perspective and they are still making money at this pricing, so they would have zero interest in your suggestion.
I just read your post - spot on.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

pindevil
Posts: 76
Joined: Thu Apr 03, 2014 11:04 am

Re: Pay off Mortgage - performing mortgage

Post by pindevil » Thu Nov 29, 2018 10:28 am

Call the bank. Can't hurt to ask. Let us know how it goes. :twisted:

User avatar
hand
Posts: 1367
Joined: Sun May 17, 2009 8:42 pm

Re: Pay off Mortgage - performing mortgage

Post by hand » Thu Nov 29, 2018 10:30 am

It has always bothered me that the option to prepay at NPV (or something discounted towards NPV) does not exist since the math should be beneficial for all parties. While the mechanical practicalities can be challenging, and obviously not worth it on a one-off basis for small loans - with the wonders of computers, this is something that should exist. Perhaps lenders make more money off those who prepay irrespective of the NPV math (house sale, death, care more about prepayment than the math) than they would on those who prepaid to realize NPV savings.

I have a number of small student loans and a mortgage locked at below market rates and some below tax adjusted inflation (1.5% - 3.25%) where NPV is less than remaining balance. I'd happily pay off at least some of these, but am bothered by the thought of handing back the NPV related savings.

sergio
Posts: 452
Joined: Sat Jun 20, 2015 6:52 pm

Re: Pay off Mortgage - performing mortgage

Post by sergio » Thu Nov 29, 2018 11:11 am

pdavi21 wrote:
Wed Nov 28, 2018 5:27 pm
noco-hawkeye wrote:
Wed Nov 28, 2018 5:19 pm
pdavi21 wrote:
Wed Nov 28, 2018 5:12 pm
... Even so, it wouldn't hurt to ask them for a discount to pay off the balance. Chances are your mortgage is going to be worth less as rates are currently rising, so the business case is there.

I don't understand this logic. If you pay it off today (according to terms) you limit the amount of interest you pay. If you string out the payments for X years you will pay more in interest.

So you think that if you pay it off today that the bank would take even less than what they have agreed to take?
The banks often sell your mortgage many times. They will sell it like a bond. If your rate is 3% on a 15 year, and the current rate is 4.5%, the bank would be (potentially) selling your 32k loan for a 22.5% discount for 24.8k to another bank. I may have done the Math wrong somewhere, but the idea should make sense.

EDIT: AND WHY SELL? To finance a 24.8k mortgage at 4.5% and make the same NPV. Now you see?
In this situation, wouldn't it be better if the bank allowed the homeowner to pay off the mortgage off at a reduced price of say, $27-28k?

Obviously different than OP's situation due to the interest rates but seems mutually beneficial to both parties unless I'm missing something...

Thegame14 wrote:
Wed Nov 28, 2018 5:07 pm
HUH?? I hope you don't mean that you think the bank will take less money than owed to pay it off now. Already paying it off now is a loss for them as they lose the future interest payments, so to think then they will also take a principal loss, no idea what to say other than never heard of anyone even thinking of that never mind actually getting it.

Unless I am wrong you owe $32K on the loan, but think you can negotiate something like if I pay it off now, will the bank take $30K instead of the $32K that you legally owe and they have a lean on with a property worth $60K??? I really hope this isn't what you are thinking....
Whether or not a bank will do this is one thing, but what if the $32k is @ 3% and the bank accepts a $30k payoff to immediately redeploy @ 5%? In this situation if they sold the note to another bank they would get much less than $30k to lend out @ 5%. This is a hypothetical example but I don't see how this whole scheme is such an obvious, clear-cut loss for the bank, unless I'm missing something.
Last edited by sergio on Thu Nov 29, 2018 11:18 am, edited 2 times in total.

User avatar
goingup
Posts: 3714
Joined: Tue Jan 26, 2010 1:02 pm

Re: Pay off Mortgage - performing mortgage

Post by goingup » Thu Nov 29, 2018 11:20 am

I'll give my layman's interpretation of early pay-offs. Banks aren't all that excited early payoffs and don't offer discounts for you to do this. They lent you the money and plan to collect all the interest due.

I think my bank thought it was a good deal for them when I paid my off 3.375 mortgage loan in May. They took the money and lent it out for 4+%. Actually, I don't think they care at all. It's a rote procedure and there are no discounts or side-deals.

So pay off your note because that's a guaranteed 4.75% return on your money. :beer

Thegame14
Posts: 1350
Joined: Mon May 07, 2018 11:53 am

Re: Pay off Mortgage - performing mortgage

Post by Thegame14 » Thu Nov 29, 2018 12:06 pm

sergio wrote:
Thu Nov 29, 2018 11:11 am
pdavi21 wrote:
Wed Nov 28, 2018 5:27 pm
noco-hawkeye wrote:
Wed Nov 28, 2018 5:19 pm
pdavi21 wrote:
Wed Nov 28, 2018 5:12 pm
... Even so, it wouldn't hurt to ask them for a discount to pay off the balance. Chances are your mortgage is going to be worth less as rates are currently rising, so the business case is there.

I don't understand this logic. If you pay it off today (according to terms) you limit the amount of interest you pay. If you string out the payments for X years you will pay more in interest.

So you think that if you pay it off today that the bank would take even less than what they have agreed to take?
The banks often sell your mortgage many times. They will sell it like a bond. If your rate is 3% on a 15 year, and the current rate is 4.5%, the bank would be (potentially) selling your 32k loan for a 22.5% discount for 24.8k to another bank. I may have done the Math wrong somewhere, but the idea should make sense.

EDIT: AND WHY SELL? To finance a 24.8k mortgage at 4.5% and make the same NPV. Now you see?
In this situation, wouldn't it be better if the bank allowed the homeowner to pay off the mortgage off at a reduced price of say, $27-28k?

Obviously different than OP's situation due to the interest rates but seems mutually beneficial to both parties unless I'm missing something...

Thegame14 wrote:
Wed Nov 28, 2018 5:07 pm
HUH?? I hope you don't mean that you think the bank will take less money than owed to pay it off now. Already paying it off now is a loss for them as they lose the future interest payments, so to think then they will also take a principal loss, no idea what to say other than never heard of anyone even thinking of that never mind actually getting it.

Unless I am wrong you owe $32K on the loan, but think you can negotiate something like if I pay it off now, will the bank take $30K instead of the $32K that you legally owe and they have a lean on with a property worth $60K??? I really hope this isn't what you are thinking....
Whether or not a bank will do this is one thing, but what if the $32k is @ 3% and the bank accepts a $30k payoff to immediately redeploy @ 5%? In this situation if they sold the note to another bank they would get much less than $30k to lend out @ 5%. This is a hypothetical example but I don't see how this whole scheme is such an obvious, clear-cut loss for the bank, unless I'm missing something.
The bank has a real interest in your property at it fair market value, to cover the loan, assuming your property isn't under water and you can pay your bill, why would they take a reduction in principal? It makes ZERO sense for them to do this. I guess in an absolute theoretical world, if interest rates sky rockets to like 20% and then they were paying 8% on deposits, then it may make sense, but they don't hold the loans anyway, they package them and sell to hedge funds, so they don't even own the loan anymore....

And your theoretical if they get my loan paid, they can loan it out at a higher rate thought, that is 100% wrong. They are not turning away new loans because they hold your loan. They make loans based on leverage, so if they have deposits of $1M in their bank, that they are probably playing 0.10% interest on, they are probably lending out $10M in mortgages at 5%, so your loan is not holding them back from making any new loans at 5%.... Any again they don't hold these notes, they package and sell them off...

Grt2bOutdoors
Posts: 21740
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Pay off Mortgage - performing mortgage

Post by Grt2bOutdoors » Thu Nov 29, 2018 9:26 pm

Just to clarify, while many banks package mortgages and sell them as RMBS based on FHLMC, FNMA or GNMA underwriting standards for conforming mortgages, not all banks do. Some banks (few) will hold onto the mortgages they originate until maturity.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

DoctorPhysics
Posts: 128
Joined: Sun Jun 07, 2015 12:50 pm

Re: Pay off Mortgage - performing mortgage

Post by DoctorPhysics » Thu Nov 29, 2018 9:41 pm

I believe in some cases banks can and do accept a discounted early payoff, especially in a rising rate environment. It allows them to free up capital for higher interest loans. Though at < 30k, the discount might not be worth their trouble.

Can’t hurt to ask. Worse you get is a no!

Topic Author
funeshah
Posts: 46
Joined: Thu Aug 28, 2014 11:05 am

Re: Pay off Mortgage - performing mortgage

Post by funeshah » Thu Nov 29, 2018 9:54 pm

Who do I ask at the bank? The servicing department agents aren’t that helpful (they’re just doing their job as they are trained to do)

NxNW
Posts: 32
Joined: Fri Sep 14, 2018 12:15 pm

Re: Pay off Mortgage - performing mortgage

Post by NxNW » Thu Nov 29, 2018 9:55 pm

The reason they are unlikely to negotiate is because you contractually owe them more.

The negotiation on the principal has already occurred between you and the bank.

Selling a loan to a third party is a different negotiation. The third-party still expects to see the full principal Plus collecting the interest.

pdavi21
Posts: 1296
Joined: Sat Jan 30, 2016 4:04 pm

Re: Pay off Mortgage - performing mortgage

Post by pdavi21 » Fri Nov 30, 2018 2:16 pm

It seems people are getting angry at the prospect of you asking for a reduced payoff (assuming rates have risen above your mortgage rate), and have decided to argue details.

I suggest you do as you please...if you want to try at it:
I suggest you go to a local branch and speak to the bank manager (or at least a loan officer).
Have in mind and explain the following:
1. I owe X dollars
2. I want to pay Y dollars today
3. It is in the bank's interest to take my Y dollars because my loan is at A percent for Z years left and the bank is currently offering B percent for Z year long mortgages.

X = 32k, Y = ~ 32k * (1-(B-A)*Z) + (All the costs/profits to the bank detailed above) + (deal sweetening)

They will say: GET THE HELL OUT AND DON'T COME BACK!!!...but at least you would have tried.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking

User avatar
grabiner
Advisory Board
Posts: 25632
Joined: Tue Feb 20, 2007 11:58 pm
Location: Columbia, MD

Re: Pay off Mortgage - performing mortgage

Post by grabiner » Sun Dec 02, 2018 11:55 am

pdavi21 wrote:
Fri Nov 30, 2018 2:16 pm
It seems people are getting angry at the prospect of you asking for a reduced payoff (assuming rates have risen above your mortgage rate), and have decided to argue details.

I suggest you do as you please...if you want to try at it:
I suggest you go to a local branch and speak to the bank manager (or at least a loan officer).
Have in mind and explain the following:
1. I owe X dollars
2. I want to pay Y dollars today
3. It is in the bank's interest to take my Y dollars because my loan is at A percent for Z years left and the bank is currently offering B percent for Z year long mortgages.

X = 32k, Y = ~ 32k * (1-(B-A)*Z) + (All the costs/profits to the bank detailed above) + (deal sweetening)

They will say: GET THE HELL OUT AND DON'T COME BACK!!!...but at least you would have tried.
But you could do the same yourself by buying a bond which has fallen in price because of rising rates. If the present value of your $32K mortgage is $28K, and you bought someone else's bonds with a face value of $32K for $28K, you would be able to use those bonds to make your mortgage payments, which is as good as having the mortgage paid off.

That said, this is probably not a good idea because of the risk involved. If you bought bonds which were originally issued for $32K with a 4.75% yield, and which have fallen in value, those bonds probably have a high default risk. It makes more sense for you to buy a risk-free "bond", even at a 4.75% yield, by paying off your mortgage.
Wiki David Grabiner

pdavi21
Posts: 1296
Joined: Sat Jan 30, 2016 4:04 pm

Re: Pay off Mortgage - performing mortgage

Post by pdavi21 » Mon Dec 03, 2018 3:24 pm

grabiner wrote:
Sun Dec 02, 2018 11:55 am
But you could do the same yourself by buying a bond which has fallen in price because of rising rates.
Good point, he could even just buy another rent property and start expanding. The bond wouldn't make it, but a balanced portfolio might after taxable capital gains and mortgage interest tax deductions.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking

Post Reply