Mortgage expert David Reed invites Walletpop readers to ask him questions about real estate financing. leave your questions in the comment section of this post.
Q: David: I have two mortgages (both 30 years...about three years in on each...5.75% and 5.825%)...($165,000 and $270,000). I also have a $150,00 balance due on a HELOC -- prime minus one -- the HELOC is paid about $1000 a month but the interest is only about $600/month...I pay the extra...Question:...is this a good move or could the extra cash be better invested elsewhere/some other way....other suggestions?
A: You've got some really great rates right now, especially the HELOC which will continue to move lower alongside future Fed cuts. I get asked this question on occasion, should you pay down your mortgage or should you invest instead? I'm not a financial adviser but your question has other variables, specifically how old you are, how long you plan to keep the property (will you retire in it?) and how much current equity you now have.