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Updated almost 8 years ago,
Mortgage Debt Payoff
Hi All,
Kind of a thought experiment which may turn into reality for me; I'd really appreciate your thoughts on this, BP community.
Let's say that you have a portfolio of ten single families with debts ranging from 5% down to 4%. For the sake of the experiment, let's also say that the loan amounts ranging from 50k to 100k on the 5% properties are higher than the loan amount on the 4% properties.
My question is - Just because mortgages don't really work like the average loan, all things being equal (equity positions on homes), would you choose to pay off the larger 5% loans first or the smaller 4% loans and roll those into paying off the 5% loans?
I'm leaning towards paying off the smaller loans first just because it would allow you to snowball those debts quicker. What say you BP?