Given increasing interest rates, does it make sense to pay off your mortgage debt or should one invest in bank deposits, equity, etc.? Why?

Asked by Trulia Chicago, Chicago, IL Mon Feb 11, 2013

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George Raymondo’s answer
George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Mon Feb 11, 2013
BEST ANSWER
Buy! Buy! Buy!

I am over 50 years old in ALL my lifetime, I have never seen these low low rates. When I bought my first home as a young man in the 80s, my interest rate as 13%!. The Investors are out like flies and they are scooping up these homes like there is no tomorrow.. and that's the smart money!
0 votes
Bill J Delig…, Agent, Naperville, IL
Wed Feb 13, 2013
For the savvy investor it is wiser to borrow at low rates and reinvest in more properties. At present both rates and real estate prices are low. That's a great combination.
0 votes
Matt Laricy, Agent, Chicago, IL
Mon Feb 11, 2013
I would invest in real estate. It appears properties are on the rise.
0 votes
Ivan Sagel, Agent, Chicago, IL
Mon Feb 11, 2013
We are currently at historically low interest rates, 2.5-3% on a fifteen year fixed loan. I would not pay off my mortgage early, I would invest in more properties. With 25% down, you can easily cash flow with a 15 year mortgage in many Chicago neighborhoods. Then, in fifteen years, your tenants have paid for your properties and you own them free and clear!

Best regards,

Ivan Sagel
312.515.7823
Ivan@atproperties.com
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