Land Payments and Interest | Money Monday

Money Monday —

Kyle made a land payment last week and mentioned how in one year our interest and principal payments had almost flipped.


2022 payment
$23,764.08 principal
$11,235.92 interest

2023 payment
$7,042.20 principal
$27,957.80 interest


Ok, so current questions —
1. Why do we have a variable rate loan?
2. Obviously, you can see what Dave Ramsey is teaching about now, right?
3. How does this impact the plan?

Starting with question number 1 this week. Honestly, I didn’t realize how low 4.25% fixed interest was. I took it for granted. Haven’t had the life experience to show us what a gift that would have been to lock in. Oh and I’m an eternal optimist more than a risk manager…

Did you take low interest for granted also or has life shown you that 4.25% is a rate you lock in?

Discussing question 2 next Monday, come back then! ☺️

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