Posted by John Corey on December 12, 2005 at 10:51:38:
There is not enough info to truly answer. If paying down the loan reduces the payments that might matter. If the interest rate on the loan was 20% while CDs pay 4% then that would bias the reply.
Most important IMHO is flexibility. Paying down the land loan by 20% increased the equity but does not stop you from losing the property if something happens. Having cash that can be used to make the payments, pay back principle or pay for some sort of study if you wanted to develop the land is more valuable I think.
Now, if you are the type that can not keep your hands off the cash and will spend it on something my advice would be different.
John Corey