On Apr 30, 2:42 pm, RML <r...[at]rml.net> wrote:
- quote -

Well, on a) you pay about $800 interest, and on b) you end up with
about $27K if you put in (put back) 700/month .. or with b) you're up
$2K.

In article <pjcc3357bku73josumcvshmp98njqqa0r5[at]4ax.com> ,
RML <rml[at]rml.net> wrote:

- quote -

You are making it overly complicated. All you have to do is
compare the interest rates that you are paying, assuming that
that time period is the same. Details about payback are the
same because you have to either pay the loan or consider the
opportunity cost either way.

Is the 1.9% some special loan, or is that a credit card
advance check? If so, are their any check advance fees?
In general, I'd avoid the credit card check unless you have
no other good option. The chance of something bad happening
and the loan ending up at 24% (even for just one month) is
too high of a risk to take.

I'd use the 25K from the account that you have handy, and
they work hard to pay the money back at a rate of at least
$700 a month to simulate paying it as if it was a loan.
5% is good rate for a loan, and you don't have any lenders
to deal with or any possibility of anything going bad.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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Which is better option?

Borrow 25K at 1.9 for 3 years or

Remove 25K from account making 5%.

I know it looks simple but the monthly payment of about 700 on the
loan would be earning interest at 5% if no loan payment was needed. So
by paying loan off I am paying the 1.9 and also losing the interest on
the 700 each month.