Quote:
Originally Posted by CroFlames
OK so does it make sense to start making lump sum payments now while I'm locked in for about 3 more years at a really low rate, or do I just enjoy this low interest holiday until I get bent over in 3 years?
Then start making lump payments when rates are high?
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Depends on your discipline I guess? Technically, if you're on like a 2% rate, even a GIC will get you like 5% right now, so you can earn 3% net until renewal, and then lump sum pay off the 3 years were you were going to, but just at the end of your term.
That's provided you save that lump sum amounts and don't spend it. If you know you are going to spend it, then it's better to make regular lump some payments.