paying off loans before term

Guest 0.10 Dollars($)

Will it be better to pay off all the loans before their term?

Guest 0.10 Dollars($)

Hi Lemieux,

It's a good sign that you want to be debt free and don't carry on with these liabilities. It will largely depend on the therms of the loans that you have. Check if there is any pre-payment penalty.

You must also look for the interest rate on the loan compared to the rate that you could have earned from the money that you want to use to pay off the loans.

Samantha · Posted: Fri Jun 16, 2006 3:04 pm Post subject: paying off loans before term

Lemieux,

You must analyze the situation as said by Angel. It won't be wise always to pay off the loans before their terms.

If the money that you are going to spend on the pay off can earn you greater interest from investment then, it will be a bad idea to utilize the money for paying off.

But if you feel that being debt free will help you to come up with other important things where you can concentrate more then you may think of it. Mainly you need to decide on what you would prefer.

On the rate factor you may consult a tax-preparer to know whether it will be better to keep your loans and thus writing off the interest expense.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

Check with your lenders if there is prepayment penalty on the loans first and then you can decide on your actions.

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