Have 3 Mortages to pay off! Advice??? - HomeModders.com

coolfes · 07-23-2009, 11:52 AM

Hi everyone,

I don't have all the information since my parents are the one who owns the buildings. Here's some background, they bought 3 apartment buildings as an investment by generating rental income.

home 1 was bought back in 2000 for around 500,000 K

home 2 was bought back in 2003 for 800,000 K

home 3 was bought back in 2005 for about 1.2 million

I am interested in buying my own home in the next 4 years so that is why I have been looking at mortgages and mortgage strategies.

I am not positive what they have, but I am pretty sure they have a 15 year mortgages on all 3 buildings. What would be the best strategies? Will slowing down the payment from house 1 since it is almost paid off, to pay off the the huge chunk of home 3 help save money in the end?

Also, is there any good books that one has come across? And any books in Chinese? (my parents do not know English very well)

Thanks in advance!!!!!!!!!!!!!!!!

briansol · 07-24-2009, 03:12 PM

always pay off the most expensive thing first. Due to the way APY is calculated, every dollar you take off now is 2 dollars you save next year and so on until its paid for.

i would pay min on home1 and home2, and dump anything extra into home 3.

of course, this doesn't take into consideration, interest rates, which you didn't share with us. if house 3 has the lowest intrest rate, the above might not be the best plan.

steveshapiro · 04-01-2011, 06:49 PM

Yikes... this is the risk people take when they buy so many homes at mortgage. If interest rates rise, they could be in serious trouble! But, in the meantime, to avert that, you should pay off the most expensive properties first because in terms of interest, these are (long-term) going to cost you the most. If you need to restructure your debt at all, do it in a way that will get the most costly property off your back first.

07-23-2009, 11:52 AM	#1
coolfes Junior Member Join Date: Jul 2009 Posts: 1 Rep Power: 0	Have 3 Mortages to pay off! Advice??? Hi everyone, I don't have all the information since my parents are the one who owns the buildings. Here's some background, they bought 3 apartment buildings as an investment by generating rental income. home 1 was bought back in 2000 for around 500,000 K home 2 was bought back in 2003 for 800,000 K home 3 was bought back in 2005 for about 1.2 million I am interested in buying my own home in the next 4 years so that is why I have been looking at mortgages and mortgage strategies. I am not positive what they have, but I am pretty sure they have a 15 year mortgages on all 3 buildings. What would be the best strategies? Will slowing down the payment from house 1 since it is almost paid off, to pay off the the huge chunk of home 3 help save money in the end? Also, is there any good books that one has come across? And any books in Chinese? (my parents do not know English very well) Thanks in advance!!!!!!!!!!!!!!!!

07-24-2009, 03:12 PM	#2
briansol Administrator Join Date: Aug 2007 Location: Central CT Age: 32 Posts: 499 Rep Power: 10	always pay off the most expensive thing first. Due to the way APY is calculated, every dollar you take off now is 2 dollars you save next year and so on until its paid for. i would pay min on home1 and home2, and dump anything extra into home 3. of course, this doesn't take into consideration, interest rates, which you didn't share with us. if house 3 has the lowest intrest rate, the above might not be the best plan. __________________ 1997 2050sqft Split Level

04-01-2011, 06:49 PM	#3
steveshapiro Experienced Modder Join Date: Mar 2011 Location: Bensalem Posts: 6 Rep Power: 0	Yikes... this is the risk people take when they buy so many homes at mortgage. If interest rates rise, they could be in serious trouble! But, in the meantime, to avert that, you should pay off the most expensive properties first because in terms of interest, these are (long-term) going to cost you the most. If you need to restructure your debt at all, do it in a way that will get the most costly property off your back first.