As the title says, the loan balance on the rv is $28,300k, with a remaining 6yrs left on the note at 9.49% interest. I have the funds to pay it off, but the $460 payment doesn’t really hurt me at this moment and I rather have the money in a liquid savings account.
What’s ya advice on this ?
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6 years at 9.49% is an additional $9,000 in interest over the next 6 years. If you have at least 56k liquid, I think it might be a smart move to just pay it off now. There's no investment which matches/beats this interest rate consistently and having 28K liquid after paying off the RV is still a decent amount of cash.
Pay. It. Off. Saves you $9k in interest!!
How much do you currently have in liquid?
At least double the 28k
I don’t understand. You don’t know how much you have in liquid?
Honestly not exactly.
It sounds like you have enough to pay it off. But keep track of your balances.
Why pay interest?
If the interest paid is lower than the interested gained why wouldn't he pay interest
Can you claim the interest as home or 2nd home on taxes? I’ve not owned one in years. But you used to be able to -
Do you use it often enough to justify owning one? Assuming it’s a Recreational Vehicle; as in Pontoon Boat, speedboat, sailboat; jet ski, snowmobile etc. Do you use it often enough to not rent one occasionally?
Pay it off. That’s a guaranteed return you’re not getting in a savings account and you can always rebuild liquidity by redirecting the 460 a month back into savings.
Pay it off. You're getting soaked on interest.
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