Labels

Pay down your mortgage or invest? | Kim Kroner Real Estate

Have extra cash? Should you invest it or use it to pay down your mortgage? When you pre-pay part of your mortgage, you end up paying less in interest. But as a result, you also lose part of your mortgage interest tax break. Your true savings, then, can be expressed as the difference between your mortgage interest rate and the rate at which you take your deduction (a function of your total marginal tax rate). If that net percentage figure is less than the amount you could make investing the cash, you're better off investing it. For More Information: If you are unable to put 20 percent down for your mortgage payment, you will be required to pay Private Mortgage Insurance or PMI. This insurance protects your lender from borrower defaults. If you are thinking about buying a home and your mortgage will require you to carry PMI, keep in mind that you’ll be increasing your monthly cost of owning a home. The good news is you’ll only need to carry PMI until the value of your home has appreciated or when your loan has been paid down sufficiently. In today’s market place, the benefits of being a homeowner often outweigh the extra monthly cost of PMI. I’d be happy to help you evaluate mortgage options you’re considering or refer you to a qualified lending professional who can give you a full picture of your options. For More Information: Kim Kroner Realtor - Associate Broker Top Producer - NVAR Multi Million Dollar Sales Club Member - Long & Foster Chairman's Club Long & Foster Christie's International kim@kimkroner.com (703) 946-2526 (800) 9611328 www.kimkroner.com 309 Maple Ave W. Vienna, VA 22180 Kim Kroner Realtor - Associate Broker Top Producer - NVAR Multi Million Dollar Sales Club Member - Long & Foster Chairman's Club Long & Foster Christie's International kim@kimkroner.com Cell; (703) 946-2526 Toll Free: (800) 9611328 Web: http://www.kimkroner.com
Have extra cash? Should you invest it or use it to pay down your mortgage? When you pre-pay part of your mortgage, you end up paying less in interest. But as a result, you also lose part of your mortgage interest tax break.
Your true savings, then, can be expressed as the difference between your mortgage interest rate and the rate at which you take your deduction (a function of your total marginal tax rate). If that net percentage figure is less than the amount you could make investing the cash, you're better off investing it.


For More Information:

If you are unable to put 20 percent down for your mortgage payment, you will be required to pay Private Mortgage Insurance or PMI. This insurance protects your lender from borrower defaults. If you are thinking about buying a home and your mortgage will require you to carry PMI, keep in mind that you’ll be increasing your monthly cost of owning a home. The good news is you’ll only need to carry PMI until the value of your home has appreciated or when your loan has been paid down sufficiently. In today’s market place, the benefits of being a homeowner often outweigh the extra monthly cost of PMI. I’d be happy to help you evaluate mortgage options you’re considering or refer you to a qualified lending professional who can give you a full picture of your options. For More Information: Kim Kroner Realtor - Associate Broker Top Producer - NVAR Multi Million Dollar Sales Club Member - Long & Foster Chairman's Club Long & Foster Christie's International kim@kimkroner.com (703) 946-2526 (800) 9611328 www.kimkroner.com 309 Maple Ave W. Vienna, VA 22180

Kim Kroner Realtor - Associate Broker


Top Producer - NVAR Multi Million Dollar Sales Club


Member - Long & Foster Chairman's Club

Long & Foster Christie's International

kim@kimkroner.com

Cell; (703) 946-2526

Toll Free: (800) 9611328

Web: http://www.kimkroner.com




 
Pay down your mortgage or invest? Have extra cash? Should you invest it or use it to pay down your mortgage? When you pre-pay part of your mortgage, you end up paying less in interest. But as a result, you also lose part of your mortgage interest tax break. Your true savings, then, can be expressed as the difference between your mortgage interest rate and the rate at which you take your deduction (a function of your total marginal tax rate). If that net percentage figure is less than the amount you could make investing the cash, you're better off investing it. For More Information: If you are unable to put 20 percent down for your mortgage payment, you will be required to pay Private Mortgage Insurance or PMI. This insurance protects your lender from borrower defaults. If you are thinking about buying a home and your mortgage will require you to carry PMI, keep in mind that you’ll be increasing your monthly cost of owning a home. The good news is you’ll only need to carry PMI until the value of your home has appreciated or when your loan has been paid down sufficiently. In today’s market place, the benefits of being a homeowner often outweigh the extra monthly cost of PMI. I’d be happy to help you evaluate mortgage options you’re considering or refer you to a qualified lending professional who can give you a full picture of your options. For More Information: Kim Kroner Realtor - Associate Broker Top Producer - NVAR Multi Million Dollar Sales Club Member - Long & Foster Chairman's Club Long & Foster Christie's International kim@kimkroner.com (703) 946-2526 (800) 9611328 www.kimkroner.com 309 Maple Ave W. Vienna, VA 22180 Kim Kroner Realtor - Associate Broker Top Producer - NVAR Multi Million Dollar Sales Club Member - Long & Foster Chairman's Club Long & Foster Christie's International kim@kimkroner.com Cell; (703) 946-2526 Toll Free: (800) 9611328 Web: http://www.kimkroner.com Have extra cash? Should you invest it or use it to pay down your mortgage? When you pre-pay part of your mortgage, you end up paying less in interest. But as a result, you also lose part of your mortgage interest tax break. Your true savings, then, can be expressed as the difference between your mortgage interest rate and the rate at which you take your deduction (a function of your total marginal tax rate). If that net percentage figure is less than the amount you could make investing the cash, you're better off investing it. For More Information: If you are unable to put 20 percent down for your mortgage payment, you will be required to pay Private Mortgage Insurance or PMI. This insurance protects your lender from borrower defaults. If you are thinking about buying a home and your mortgage will require you to carry PMI, keep in mind that you’ll be increasing your monthly cost of owning a home. The good news is you’ll only need to carry PMI until the value of your home has appreciated or when your loan has been paid down sufficiently. In today’s market place, the benefits of being a homeowner often outweigh the extra monthly cost of PMI. I’d be happy to help you evaluate mortgage options you’re considering or refer you to a qualified lending professional who can give you a full picture of your options. For More Information: Kim Kroner Realtor - Associate Broker Top Producer - NVAR Multi Million Dollar Sales Club Member - Long & Foster Chairman's Club Long & Foster Christie's International kim@kimkroner.com (703) 946-2526 (800) 9611328 www.kimkroner.com 309 Maple Ave W. Vienna, VA 22180 Kim Kroner Realtor - Associate Broker Top Producer - NVAR Multi Million Dollar Sales Club Member - Long & Foster Chairman's Club Long & Foster Christie's International kim@kimkroner.com Cell; (703) 946-2526 Toll Free: (800) 9611328 Web: http://www.kimkroner.com Pay down your mortgage or invest?
Labels:
Location: Richmond, VA, USA

Comments

Post a Comment