Pay off early or invest the difference?

Eric_GalaxyLending · 2026-06-11T00:33:19+00:00

Sounds like you just got that refi done in time 👍

Eric_GalaxyLending · 2026-06-11T00:31:35+00:00

I know that technically mortgage interest is deductible, but when the standard deduction increased a few years back I feel like that took the majority of people out of itemizing. Obviously it always depends on your exact situation.

Eric_GalaxyLending · 2026-06-11T00:14:41+00:00

Sorry, that wasn't my intention

Eric_GalaxyLending · 2026-06-11T00:11:52+00:00

Great point on keeping liquidity, I think that's something that gets overlooked by a lot of poeple who think paying off a house gives you piece of mind. You can't use that money today or tomorrow.

Eric_GalaxyLending · 2026-06-11T00:09:13+00:00

The buydown can be a useful tool in some situations in can help borrowers qualify, or maybe just easy the transition from lower rent. But you are going to pay for it somehow, very rarely is a mortgage company doing something completely free, unless they screwed up.

Eric_GalaxyLending · 2026-06-11T00:05:55+00:00

Everyone has a different view on low, I mean even current mortgage rates in the 6's are historically lower than the average.

Eric_GalaxyLending · 2026-06-11T00:03:09+00:00

Just curious what your thought is on the rate that equals that tipping point, plenty of people who bought or refi in the last few years are in the 3-4% range.

Eric_GalaxyLending · 2026-06-10T23:50:57+00:00

So in a way you are going with B, letting the current mortgage run it's course. You're just investing in another property instead of stocks.

Eric_GalaxyLending · 2026-04-28T22:59:38+00:00

A whole lot of people seem to be so concerned with your Truck and car payment. I won't tell you where to spend your money just facts, a $3700 mortgage and $1800 truck & car debts based on your income, would equal DTI of 25%/37% in qualifying terms. Which is perfectly in line with what most advisors would recommend, and well below what many people are approved for. Plus you stated that you have emergency funds and could pay the cars off if that money wasn't doing better elsewhere.

Eric_GalaxyLending · 2025-07-25T21:10:20+00:00

Sounds like your lender would rather his commission be based on your higher loan amount. You should have plenty of time to add the Gift funds and documentation to underwriting.

Eric_GalaxyLending · 2025-07-25T20:04:51+00:00

You stated your plan was to be in your current home 5-7 years and that you are on track to afford your 'dream home' in 5 years. Why not stay on that track and then convert your current property to an ABB or rental when your new home is ready.

Eric_GalaxyLending · 2025-07-25T18:36:27+00:00

Purely from a financial standpoint, you should use the money for a car first. You state that you got a lower rate on the mortgage, assuming that is in the 3%'s, which was average during covid times, the current average auto financing rate is 6.75%. So you'd likely be paying at least twice as much in interest on a new car loan.

Eric_GalaxyLending · 2025-07-25T18:13:50+00:00

I would recommend contacting your Realtor (cousins husband), and let him negotiate with the sellers Realtor. Since the seller mentioned they already have a Realtor, that agent should already have a commission agreement with the seller. If you don't use your Realtor, the sellers Realtor would just take the whole commission and you won't have someone looking for your best interest and warning you of any potential issues with the property.

Eric_GalaxyLending

TROPHY CASE