Ask Terry Questions Follow-up on Question

Follow-up on Question

By Terry Savage on March 15, 2024 | Housing / Real Estate

I have a mortgage with 4.125% interest rate until 2027. There is 72,000 left on the note. I have been paying and extra $500 on it monthly and I am noticing the interest decreasing but on $2-3 dollars a month.
Does it make more sense to keep paying more on this loan to pay it off sooner, or would it be wiser to open a CD or T Bill every other month with the extra $1000?
Thank you for your input and thoughts.
Terry Says

That’s a close call. It really depends on your age and stage in life, and other personal financial details like savings in a retirement account. Without that info, it’s hard to make a decision, just based on rate differentials.


Far enough. Good questions. I am 62. My savings is OK and have a few retirement accounts probably amounting to 100-125k.

Terry Says

Oops sorry I missed this or I would have answered more promptly!
Well, it’s still a tough call. Your rate is pretty low. So I’d probably stick with the mortgage till it’s paid off.



a personal
finance question