|
SW Iowa | The only weak point you have is you say:
" use the lowest int rate possible to get out of the deal that is stacked against you from the get go as soon as possible"
Most all farm lenders have 'no prepayment penalty', or 'prepayment provision' clause in their lending agreements (even 25 yr long term farm loans), You may have to be in the loan for a year to qualify, but still it is there in case you want to get out immediately. So, again your argument of getting a variable short term loan "to get out of the deal ASAP" is a non issue. Even insurance company loans will let you out after paying a penalty.
The guy like Tommy who prepays his loans has sterling credit with a lender(s), and should he hit a tough spot in life, he can be assured of a helping banker to lend him money back again. It is always best to prepay a loan if you can do it, but if you are trying to build a business, or expand a business to increase profits...then of course, expansion is ahead of paying off existing debt. If you are done growing a business, and are retiring, then yes, pay off existing debt and do not take on anything new. All depends on where your place in life is. | |
|
Paying off Long Term Loans? Your Thoughts.
