Hello, first time poster. I’m a home and property owner, both under VA loans. I’ve been renting out a property in Florida for the past 3 years, and have a very dependable renter pool there given proximity to multiple military bases. Since renting it I’ve been rolling all the money over the mortgage back into it to quickly pay it off. I’ve seen comments in passing before that with debt as cheap as it currently is, there is no sense in paying off early. My rate is under 3%, and the math adds up to around 50k saved over the life of the loan by paying ~$500 extra per month, leaving me with about 14 years remaining out of 30 (purchased in 2017).
I’ve had my eye on land (PA-WV area) to purchase for awhile, and can afford it without dipping into the excess income from the rental, but again, with debt being cheap, I’m wondering if it would be more worth it to allow the mortgage on the rental to be paid on schedule and use the excess for the payments on land instead. I can only expect land to get more expensive, especially as mineral rights continue to be parsed out as they are, and I’m betting on the delta between money saved in interest and appreciation of land by The time the rental would be paid off early to be pretty close, and better off being ahead of the curve.
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source https://www.reddit.com/r/RealEstate/comments/tigcb1/using_excess_payments_from_rental_quickly_pay/
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