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Missouri | Thinking rising interest rates from these historic lows. What % of ones total long term borrowing should be locked in various categories. Short term lock say 1-3 yrs (maybe 25%) Medium term lock 3-10 yrs (maybe 25%) Long term lock 10-20 yr (maybe 50%). Never heard anything around a formula or recommendation like this over the years. Then how would one go about paying them off. While normal thinking says pay off highest interest first that defeats the purpose and exposes higher percentage to the risk of rising interest on short term lock. Pay off maybe like 75% to short term and 25% to the long term. (Working off an Average interest rate not a specific number) Lucky that lender has various product to choose from and willing to do split loans. Blend all this with the discussions of Inflation. Really hate to concentrate on the long term fixed as using inflated dollars, latter to pay off those notes some how enters into the formula. Discussion would be appreciated, good to make us think. Thanks. | |
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