[quote=Cube]I’ve been pondering the idea. I can’t come up with a good model of how paying it off would translate into eventual resale value.
Given that today it is a hidden cost, I feel that paying it off will be a hidden benefit, difficult to market to future buyers. “Hey, you don’t have to pay this thing that you already weren’t considering as part of the purchase price… That makes this house more valuable by X much, so pay me more.”[/quote]
Future buyers who take mortgages out will be constrained by the appraisal at the time, which will reflect its value as if it still has the MR encumbrance. This is due to the vast majority of closed sales still having the encumbrance.
I don’t think you could get your investment of $58K back unless you reside there ten years or more. And at that time, you may obtain the same sales price if you leave the MR in place.
I don’t see a way around it that makes sense unless you are *certain* you will hang onto the property for a very long time as life can throw you many curveballs.
