- Bargaineering - http://www.bargaineering.com/articles -
Second Mortgage Paid Off
Posted By Jim On 12/22/2005 @ 2:15 pm In Personal Finance,The Home | 2 Comments
Almost six months ago, I purchased a house in one of the elegant suburbs of Baltimore, Maryland and elected to apply for a first and second mortgage instead of a larger first mortgage and PMI (Private Mortgage Insurance), I discussed the reasoning in an article explaining piggyback mortgages . Some lamented the fact that I opted for a higher interested rate (7.5% fixed on the 2nd mortgage compared to 5.75% on the 1st) but I felt that it was the best decision. Fast forward six months and with the 2nd mortgage paid off – it appears that, at least marginally, it was the better decision. At the very least, I avoided paying 6 months of PMI for no reason.
There will always be the eternal debate of whether I should have invested the money in the stock market instead of paying off a mortgage but at the end of the day, it feels good not to have that mortgage hanging over the house.
Happy Holidays everyone!
Article printed from Bargaineering: http://www.bargaineering.com/articles
URL to article: http://www.bargaineering.com/articles/second-mortgage-paid-off.html
URLs in this post:
 Tweet: http://twitter.com/share
 Email: mailto:?subject=http://www.bargaineering.com/articles/second-mortgage-paid-off.html
 article explaining piggyback mortgages: http://www.bargaineering.com/articles/pmi-or-piggyback-mortgage.html
Thank you for reading!