[quote=sdrealtor]I think you need to re-read what he wrote and check your math. He wrote maybe $10,000 to $20,000 more for paid off MR on a house with $5400 annual MR (payoff = $58,000). And I think thats a fairly big maybe. His opinion is very much in line with mine that paying them off wont get you close to a dollar for dollar return. A 2 to 4X the annual MR payment seems like a reasonable boost in value for paid off MR but I wouldnt expect more. Paying them off could be a wise choice if you stay long term but most likely wouldnt if you wanted to boost resale value only.[/quote]

Doesn’t this scream “whatever you do, don’t buy a house with MR ” ??

I mean, if by paying them off early you get out from under a 9% loan, but it doesn’t increase the value of the house by the same amount, then buying into a place with MR is just dumb.

Just a trick the developers pull because people aren’t making rational decisions.

Maybe the good realtors will start a trend of putting in buy offers that include a requirement that, as a part of escrow, the MR tax is paid off. Then, you can get clear comparisons between houses with different MR. i.e. offer 800K for a house with $40K in MR, or $840K for a house without it. Either way, you offer $840K with any and all MR paid off.