Originally Posted by
Extenda
But historically the total return of the S&P is 10% if left untouched. If your timeline is thirty years on a 3% mortgage then you’re literally going to be millions of dollars poorer if you pay off your mortgage quicker instead of dumping excess cash into the market (depending how fast you want to pay it off if able).
The “peace of mind” you’re getting for owning your house is an illusion. You never own your house, you just keep renting it from the government at a low price instead of the bank.
You must've skipped the multiple responses going over exactly what you're saying. Yes for the millionth time, paying down a 5.5% mortgage nets you less than investing the money, historically. Yes, yes, yes. The counter argument is if you already max out all of your tax advanged accounts every single year, contribute to your brokerage on top of it, and already have a large amount of investments/retirement, do you really need to invest
even more?
For me, it was diversification (like how some have bonds in their portfolio), and insurance (insurance is often "wasted money" in the end, but it's not there to maximize your money, it's there if things get bad).
The "you don't own your house" is a tired line. Ok whatever. If we take a massive paycut or even go Ch 7, I'll be in a much better position having a very very small yearly payment on a "house I don't even own" vs many sizeable monthly payments on a "house I don't even own". It's a non serious argument.
"But you can use the money you invested instead of paying the mortgage!" Ok cool let me sell a bunch at probably a very low recession dip (I did just lose my job so the economy probably sucks) and instead of living off this money I'm going to have to use it for the mortgage.
I don't know, call me crazy, I enjoy the peace of mind and financial security I have now instead of dying with an extra million in the bank.