Originally Posted by
wetradio
Hello,
Various mortgage calculators indicate I can pay-off my mortgage in a little over a year by taking out the max allowed by a General Purpose loan, what I have in savings and paying extra principal each month for the next 14 months. By doing so I would save approx 50k in interest. We are in year 13 of a 30 year loan. I am 57 and got started late in federal employment and TSP max contributions.
I believe I have heard people say don't take out loans because it cripples the TSP growth which I understand; returns on 50% rather than 100%. I have 65k in the TSP account and can take out a max loan of 27k. I would set up the repayment to occur over 5 years and could probably make the period shorter.
I know there are always variables, but the prospect of saving 50k in interest and having my house pay off in 14 months is very appealing. Your feedback would be very appreciated. Thank you.
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