Paid off Solar Loan #1 - 9 months early!

[ProxyRetired]

Installed solar this spring. Took out two loans (1 y/r 5%, and 15 y/r 4.5%), with full intention of paying off early.

Just paid off the 1 y/r loan 9 months early, saving almost $1000 in interest.

As soon as state SREC check clears, and we capture 30% tax credit early next year, we will pay off the 15 year loan, 14 years early, saving... a lot.

Our friends think we're crazy. I'd like to think you all understand my joy. :)

[Must_ache]

Installed solar this spring. Took out two loans (1 y/r 5%, and 15 y/r 4.5%), with full intention of paying off early.

Just paid off the 1 y/r loan 9 months early, saving almost $1000 in interest.

As soon as state SREC check clears, and we capture 30% tax credit early next year, we will pay off the 15 year loan, 14 years early, saving... a lot.

Our friends think we're crazy. I'd like to think you all understand my joy. :)

You could invest that money in risk-free 20-year treasuries at 3.75%, so paying off 4.5% probably is really only saving you 0.75%.     

[ProxyRetired]

Installed solar this spring. Took out two loans (1 y/r 5%, and 15 y/r 4.5%), with full intention of paying off early.

Just paid off the 1 y/r loan 9 months early, saving almost $1000 in interest.

As soon as state SREC check clears, and we capture 30% tax credit early next year, we will pay off the 15 year loan, 14 years early, saving... a lot.

Our friends think we're crazy. I'd like to think you all understand my joy. :)

You could invest that money in risk-free 20-year treasuries at 3.75%, so paying off 4.5% probably is really only saving you 0.75%.     

Very true. And we could have locked 10K of the cash away into I-series Bonds for 9%+. We chose to pay off our debt, which given a looming recession, might be the best choice for us. For us, getting the loans off the books (short as they are) is a priority for us. Either way, invest or payoff, I think we'll be making the right choice. :)