I have a bit more money right now than I have had in the past. I was wondering what your guys thoughts and rule of thumb were on when it's worth paying off debt vs when it's worth keeping cash on hand?
I like the idea that I have cash incase a good investment opportunity comes up maybe a house comes on the market cheap or silver price is low and I want to buy a monster box. I could also put it in the stock market or a fund.
On the flip side I have a 25 year mortgage at 4.85% and a 4 year carnote at 5%. I was debating whether I want to keep cash on hand for opportunities and comfort of knowing I have cash vs paying some of this down. I guess if I pay the carnote or pay extra on the mortgage I'm essentially making 5% and 4.85%.
I know people say if you can make more off an investment than your paying in interest then do it but I cant be certain what returns something will bring.
Is there a hard and fast rule like under 3% dont pay it off over 3% pay it off? What are your guys thoughts and what would you do personally?
I like the idea that I have cash incase a good investment opportunity comes up maybe a house comes on the market cheap or silver price is low and I want to buy a monster box. I could also put it in the stock market or a fund.
On the flip side I have a 25 year mortgage at 4.85% and a 4 year carnote at 5%. I was debating whether I want to keep cash on hand for opportunities and comfort of knowing I have cash vs paying some of this down. I guess if I pay the carnote or pay extra on the mortgage I'm essentially making 5% and 4.85%.
I know people say if you can make more off an investment than your paying in interest then do it but I cant be certain what returns something will bring.
Is there a hard and fast rule like under 3% dont pay it off over 3% pay it off? What are your guys thoughts and what would you do personally?