In the eyes of savvy investors, Kirkland is one of the best places for real estate investment. Because Kirkland real estate market will be robust and experience solid growth, this place is expected to see the growth in real estate in the upcoming years. But the question is if you have money and whether you want to reduce the mortgage debt or invest in real estate property? It is always advisable to clear the debt first and then go for the real estate investment. In the event, if you take more loan to buy the property without repaying an earlier one, then it becomes riskier and falls in you in the trouble of the debt.
If you ask any financial advisor whether I should opt for the real estate investment or repaying my mortgage loan, then he will advise first clear your debts and then invest your money in the real estate investment. A professional Kirkland mortgage company would definitely help you to get the best deals around. Let’s understand our advice with is an example.
Suppose if you had a $500,000 mortgage over 30 years with a 4% interest rates, you would end up paying $359,347 in interest rate on top of that. If you were ten years into the mortgage and you started paying an extra $200 a month in repayments you would end the home loan two years and three months faster. Plus you would pay $22,000 less in interest.
There are so many benefits of playing off your mortgage home loans faster, but some of them are listed below-
- Increase the EMI by 5% every year is a smart choice to reduce the interest repayment burden. You can align this increase in salary or receiving any other annual bonus. If you can combine the two i.e. pay one additional EMI per year, along with increasing your amount by 5% every year. The interest burden will get significantly decreased.
- Making higher down payment when obtaining a home loan decrease the burden of EMI and also mortgage rates.
- Your property is a form of wealth- the less debt you hold, the more equity you will have.
Buy an investment property:
But not all debts are bad. If you are borrowing more money to invest in the wealth-creating assets, that’s a pretty productive investment. Buying an investment that gives you fruitful money in the upcoming years is better than repaying money for an existing mortgage home loan. But it is associated with some risk that we have mentioned below-
- You have a legal responsibility to maintain your investment property; this can be costly.
- Your property can also lose value. The ups and downs of the real estate investment can make your decision volatile. So, before purchasing property research the area carefully.
- If you are unable to find tenants, it is very expensive to hold the property and difficult to repay the EMI.
Over to You:
If you ask us whether you choose mortgage repayment or investment property, we will say mortgage repayment if your risk appetite is low. But, if you are ready to take a risk and wanted to build assets value, then you definitely opt for the investment property option.
