The advice above is correct. If the rate payment is without extra cost, you got a loan at zero percent interest.
Even if your money is just in a savings account, the payment loses in value each month at you pay infinitesimally less every month in terms of what you can buy with that.
If you put the money into savings, assuming broad market index funds (etfs), that’s about 7 percent you earn on that per year while you pay off the rates. Well just 8/12 of that, but still…
I’m debt free and i prefer it that way, but I also know i pay a big price for that over thirty years.
The advice above is correct. If the rate payment is without extra cost, you got a loan at zero percent interest. Even if your money is just in a savings account, the payment loses in value each month at you pay infinitesimally less every month in terms of what you can buy with that. If you put the money into savings, assuming broad market index funds (etfs), that’s about 7 percent you earn on that per year while you pay off the rates. Well just 8/12 of that, but still…
I’m debt free and i prefer it that way, but I also know i pay a big price for that over thirty years.