February 21, 2008

Why Pay Down The 2nd?

We recently had a friend ask us why we are paying down our condos 2nd mortgage at an accelerated rate. I think it makes sense for a few good reasons:

1. It is our highest interest rate debt at 8.55%.
2. Once we pay it off we can:

a. Stay in our condo & have an additional $411.33/month to put towards saving for a house.
b. Buy a house and pretty much break even on renting out our condo.
c. Sell our condo, if necessary, and hopefully not be upside down.
3. We don't have kids yet and can afford to pay extra to our mortgage.

2 comments:

budgets are sexy said...

Dude, i couldn't agree more. Unless you're a master of investing and can conjure up a definite 10% in something, it's freakin' a fabulous idea.

You're SAVING 8.55% each year, PLUS it's all extra, so good for you!

btw, your "about me" is hilarious. haha ...

1MansMoney said...

Thanks for the support Bugets Are Sexy and, yes, I'm very lucky to have a young, hot wife.

-1ManMoney