For years I was all about paying my house off early. I wanted that debt gone. I understand why people feel that way.

Then 2021 and the next 5 years happened. I got a 2.25% mortgage, and I became way more senior. In a nod to Ramsey, it’s a 15 year mortgage,

The mortgage, as a percent of my take home, is incredible low. I’m able to save $4000 a month in a taxable account, invested in a mix of assets including stock ETFs.

My taxable account has ballooned over the last few years to the point where I have enough to pay off my house. A good year in the market covers 2 years of mortgage expenses.

My plan absolutely has more risk, as the market could take a 50% dump and I get furloughed. However, overtime, if one is an aggressive saver, the risk profile becomes less and less as the delta (mortgage vs taxable balance) grows.

In my opinion, the risk profile is most critical when people pre-pay their mortgage before having enough to pay their balance off. Using the poster above who is paying $10,000 extra a month, that’s money that’s gone, or at least difficult to get back. In a downturn, I’d rather have that money to figure life out. I’d at least wait until you can pay the mortgage off in one payment.