Free and Clear or No? - Posted by Druss

Posted by Ronald * Starr(in No CA) on March 07, 2003 at 12:56:28:

Druss---------------------

No. Why not? Use the money that would pay down that mortgage to buy other properties. You should get a return on your investment which is greater than the return you get from paying down debt early. Typically the return on paying down debt early is about 0.25-0.50 of a percent above the interest rate on the loan being paid down early. If you are not getting at least 10% per year return on rental properties, you probably not doing things correctly.

Good InvestingRon Starr********

Free and Clear or No? - Posted by Druss

Posted by Druss on March 06, 2003 at 19:20:15:

In areas that in the past have seen little if any appreciation such as low income places, do you believe in paying off the mortgages as soon as possible? If not, why not?