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I just bought a car with a 6 year, 0.9%APR loan. I literally make more in an FDIC insured bank account. If you have a mortgage on your primary residence on the
by yojo 9y ago
I just bought a car with a 6 year, 0.9%APR loan. I literally make more in an FDIC insured bank account.
If you have a mortgage on your primary residence on the US, the interest is tax deductible. This can make your effective rate extremely low, and it's not hard to find an investment with better returns.
Not all loans are bad; some are subsidized. It often makes sense to keep those ones.
- bane 9y agoI actually agree with this. It's more a matter of personal preference for me, I just prefer to have all the cash liquid instead of obligated somewhere. I usually just stuff it all in the FDIC insured bank account until I decide to invest it somewhere or spend it. But it does make it much easier to go "you know what, I'm going to go to France next month." and then do it. On the house front, I'm actually in the middle of a search for a new home so I can start enjoying those sweet tax breaks again and then get somebody to rent my first home so I'll basically get the new home for almost free.