Wow. Are you sure it would be a $100,000 payoff on a $540,000 house? That seems quite high. I’m still waiting on an exact payoff on my house.
My house value is double the value of yours and my estimated payoff is around $69,000. But of course there have been 9 years of payments already on it.
Still, $100k payoff seems quite high for that value.
This is a bit technical but will really disclose the ugly underbelly of
MR. You will see how they are crafted to take advantage of a lack of transparency to the tax payer. If anyone doubts their MR will not increase the maximum 2% per year you should read this. You will also see how they have ability to issue new debt and extend the duration. I know I may not recoup my payoff if I sell anytime soon but I sleep pretty well having eliminated this crazy uncertain annual cost. YMMV.[/quote]
Thanks for taking the time to repost that link sdseeker. I TOTALLY agree with you that there is a clear lack of transparency with regards to taxpayers.
The sad thing is most tax payers don’t seem to want to take the time to care about this issue. Heck, most people don’t even know the APR on their credit card so I don’t think they even know the first thing about how MR works.
Absolutely I agree with you they will raise the taxes the full 2% maximum each year. No way they will leave money on the table.
Taking a closer look at this, I don’t think it makes sense NOT to payoff the MR early if you plan to be in the home for the long term.
Just taking a look it doesn’t look like many people prepay their MR early. I looked at tons and tons of houses online and looked at the taxes on them, and I’ve never come across a house that had prepaid the CFD or at least saw $0.00 on the property tax statement.
Has anyone that has prepaid their MR off then sold their house? I’d be interested to hear how it affected the resale value on their house.
