Originally Posted by
Arado 234
Additional principle payments reduce your total interest over the life span of the loan.
I think his point was you're losing out on the opportunity to invest that money and the trade off for interest savings is lower in the long run. Like I said before this has been a debate forever. We are Dave Ramsey types (I even teach classes!) so we tend toward the lower risk end of the spectrum but there are arguments on either side.
There's a pretty good podcast, ChooseFI, that does some good dialog on both sides of this argument as well (Episode 35). One place I'm opening my aperture a bit is on holding all our efund in cash and instead considering putting some of it in low risk investments (Episode 66/66R).
Another episode that really tackles the question of a paid off mortgage is Ep 68. Specifically in the Dave Ramsey lens. For us I think our plan will always be to have our primary residence paid off and stay away from a lifestyle revolving around debt. Seems weird given that my initial question here is about a mortgage, but like I said our plan is to have that for less than a year and to keep enough capital around we could pay it off immediately if we needed to start reducing exposure.
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