Stearns County, Minnesota | If it was me, I would take option #4. If you compare option #4 to #1, the cost is about $18.40 per $1000 borrowed per year. But I would look at the taxes, also. If you are self-employed, you have Medicare and FICA taxes of 15.3%, 20% Federal Income Tax, and 10% State Tax, for a total of 45%. Now this 45% taxes will knock the cost down to about $10 per $1000. This assurance of not having to pay higher interest rates for 7 years, would be worth it in my judgment. But remember, my experience was that I payed 18% interest in the 80's and it almost took me out of business. |
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