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If you’re not using a loan to finance the construction or land purchase, it’ll definitely be economically advantageous because you’re not paying all the interes
by throwup238 2y ago
If you’re not using a loan to finance the construction or land purchase, it’ll definitely be economically advantageous because you’re not paying all the interest on the mortgage. At current interest rates you’d pay over $400k in interest on a $500k 30 year 20% down mortgage. Even at 3% you’d still pay over $200k in interest.
- chrisBob 2y agoPaying interest is horrible. Unless your investments are expected to do better than the interest rate. No way I would pull money out of the stock market to pay off my 2.25% mortgage.
- Retric 2y agoIt doesn’t need to beat the stock market to be a net win. Edit: Suppose you had a 500k investment paying ~5% you could sell to avoid a 500k mortgage at 6% that seems like a good idea. Unless you’ve got a high paying job so you could get a sweet home mortgage tax deduction. Similarly, a dividend paying stock may have returns of 5% but if you’re paying capital gains when selling that stock you’re also getting 5% of money that would disappear when sold. IE If you would keep 500k on sale a 550k investment paying 5%, it’s effectively paying you 5.5% of 500k.
- deleted 2y ago[deleted]