farmerjan
Herd Master
- Joined
- Aug 16, 2016
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- Shenandoah Valley Virginia
Hope you get the house sold quickly.
Now, none of my business, but a suggestion. With the VERY LOW interest rates, it would be to your advantage to finance the new barn, the size that you WANT, with the amenities you want.... because down the road if you do sell the place, something like that is a real selling point with people with animals... especially the horse crowd.... Your money isn't earning anything in the savings... and this gov't is going to destroy the economy with the taxes and inflation and then interest rates are going to start going up.
I am alot older than you, and I can tell you that in 1966 when my parents built the new house on the land my great grandmother gave my father, they paid interest rates of over 8% for the mortgage...savings accounts were making 3% interest or more.... daddy worked a 2nd job driving truck several nights a week for local runs from southwest CT to NYC delivering pepperidge farm bread..... and my mom went to work up the road at the local egg farm with only about 4,000 birds, candling eggs with my little sister able to come home from the bus there.... it was a small family operation that sold grade AA eggs to small little neighborhood stores... and they were lucky to get the mortgage, because the land was "paid for" ....Back then you made a whole lot less than today... I think minimum wage that I earned was 1.65......and mortgage rates went up in 70's and 80's to where there was a time that it hit in the 16% or more.
At this time, with mortgage rates at less than 3 %, you would be money ahead to finance it and then be able to put your disposable income away into some sort of safe savings... or invest in gold or silver.... because when the rates start to climb, and savings accounts are paying 5% interest...talking things like cd's that you can lock in.... you will be actually making money off your savings to pay the mortgage.....Can you imagine what it would be like in 2 years to have a 3% mortgage and the inflation rate has cause loan rates to go to 8-10%.... and you are sitting on money in the nest egg because you are actually saving money by having such a low interest mortgage...????
One reason that I have no intention to pay off my mortgage early as I was thinking to do when I took it. My rate is 2.875%..... Sure I will save the interest if I pay it off early, but should I need to borrow money for something in the future.... and the rates are up to 6 or 8 %... then the money I save with the low rate I am paying, is giving me more money to have in hand now... so I can save it even at a low savings interest rate, and then not have to borrow money at a higher rate down the road.
I hate owing money, and a long term mortgage is alot of interest, but in 5 years if I need money for something, I do not want to be faced with another loan at a much higher rate because I wanted to get this paid off sooner.
If I thought this was going to be a long time before rates were going to go up, then I would be pushing to make double payments on mine, now that I am not also paying rent and another electric bill.... but for right now, using someone else's money at this low rate makes more sense and to start stashing my "cash" for future projects. I get a few things done here, then I might start paying it off faster....
Now, none of my business, but a suggestion. With the VERY LOW interest rates, it would be to your advantage to finance the new barn, the size that you WANT, with the amenities you want.... because down the road if you do sell the place, something like that is a real selling point with people with animals... especially the horse crowd.... Your money isn't earning anything in the savings... and this gov't is going to destroy the economy with the taxes and inflation and then interest rates are going to start going up.
I am alot older than you, and I can tell you that in 1966 when my parents built the new house on the land my great grandmother gave my father, they paid interest rates of over 8% for the mortgage...savings accounts were making 3% interest or more.... daddy worked a 2nd job driving truck several nights a week for local runs from southwest CT to NYC delivering pepperidge farm bread..... and my mom went to work up the road at the local egg farm with only about 4,000 birds, candling eggs with my little sister able to come home from the bus there.... it was a small family operation that sold grade AA eggs to small little neighborhood stores... and they were lucky to get the mortgage, because the land was "paid for" ....Back then you made a whole lot less than today... I think minimum wage that I earned was 1.65......and mortgage rates went up in 70's and 80's to where there was a time that it hit in the 16% or more.
At this time, with mortgage rates at less than 3 %, you would be money ahead to finance it and then be able to put your disposable income away into some sort of safe savings... or invest in gold or silver.... because when the rates start to climb, and savings accounts are paying 5% interest...talking things like cd's that you can lock in.... you will be actually making money off your savings to pay the mortgage.....Can you imagine what it would be like in 2 years to have a 3% mortgage and the inflation rate has cause loan rates to go to 8-10%.... and you are sitting on money in the nest egg because you are actually saving money by having such a low interest mortgage...????
One reason that I have no intention to pay off my mortgage early as I was thinking to do when I took it. My rate is 2.875%..... Sure I will save the interest if I pay it off early, but should I need to borrow money for something in the future.... and the rates are up to 6 or 8 %... then the money I save with the low rate I am paying, is giving me more money to have in hand now... so I can save it even at a low savings interest rate, and then not have to borrow money at a higher rate down the road.
I hate owing money, and a long term mortgage is alot of interest, but in 5 years if I need money for something, I do not want to be faced with another loan at a much higher rate because I wanted to get this paid off sooner.
If I thought this was going to be a long time before rates were going to go up, then I would be pushing to make double payments on mine, now that I am not also paying rent and another electric bill.... but for right now, using someone else's money at this low rate makes more sense and to start stashing my "cash" for future projects. I get a few things done here, then I might start paying it off faster....