3 ms·
In some areas the 3% property tax approaches the 3% mortgage rate. Your housing costs are only halved by paying off.
by peter303 11y ago
In some areas the 3% property tax approaches the 3% mortgage rate. Your housing costs are only halved by paying off.
- vonmoltke 11y agoThose aren't equivalent. Mortgage payments include principal as well as interest. Interest is only paid on the outstanding balance, not the full, current value of the house. Even at 3% APR, the mortgage payment is typically 2 - 3 times the amortized tax payment. The actual separation depends significantly on mortgage term, value financed, value movement since purchase, and homestead laws.