View Poll Results: Mortgage paid off?
Yes and I am <40 yrs old
6
8.22%
Yes and I am 40-50
9
12.33%
Yes and I am 50-60
12
16.44%
No, less then 5 years to go
3
4.11%
No, less then 10 years to go
10
13.70%
No, don’t care, has no priority, rather invest
33
45.21%
Voters: 73. You may not vote on this poll
Primary residence paid off?
#41
Are you asking if paying off your mortgage early is a better decision or is a compromise decision that is not as good as my recommendation?
#42
This is a horrible way of thinking for several reasons. And lots of people make this mistake.
Unless you're in the business of real estate, a primary residence should not be thought of as an investment, but as a consumer item. Investments generate revenue (like a business). Homes usually appreciate over time, but not as much as the market does. And in some areas they actually decrease in value.
You're best off buying the cheapest home you can afford and then properly investing everything else you would have otherwise spent into the market over the long term. That is rock solid... except of course in a situation where there is nuclear war, a complete societal collapse, etc.
Unless you're in the business of real estate, a primary residence should not be thought of as an investment, but as a consumer item. Investments generate revenue (like a business). Homes usually appreciate over time, but not as much as the market does. And in some areas they actually decrease in value.
You're best off buying the cheapest home you can afford and then properly investing everything else you would have otherwise spent into the market over the long term. That is rock solid... except of course in a situation where there is nuclear war, a complete societal collapse, etc.
Long term you should be able to sell at a profit which is partially negated by interest paid and inflation. If you’ve paid $100k in interest that may be difficult to recoup hence an early pay off. Rental income on a paid off home for about 8-10 years should cover the interest paid.
I follow your reasoning but nobody buys the cheapest home they can afford.
Buy a home outright no mortgage, need money to make money.
#43
New Hire
Joined APC: Apr 2021
Posts: 2
Nothing wrong with your strategy, it’s just better executed with a real mortgage on your primary residence.
#45
This is my plan, which is why I'm fully invested in bottle caps and ammo...
You're long term invested in stocks that pay dividends that pay you quarterly or whatever, and that is where your 8% comes from?, or you're actively buying and selling stocks to to get that 8%? Both/Neither?
You're long term invested in stocks that pay dividends that pay you quarterly or whatever, and that is where your 8% comes from?, or you're actively buying and selling stocks to to get that 8%? Both/Neither?
#46
This is my plan, which is why I'm fully invested in bottle caps and ammo...
You're long term invested in stocks that pay dividends that pay you quarterly or whatever, and that is where your 8% comes from?, or you're actively buying and selling stocks to to get that 8%? Both/Neither?
You're long term invested in stocks that pay dividends that pay you quarterly or whatever, and that is where your 8% comes from?, or you're actively buying and selling stocks to to get that 8%? Both/Neither?
#47
Ah, ok. I'm relatively new at all this, besides just dumping money into a 401k. I started investing last year in dividend stocks. Not much change in the actual value of said shares, but at the rate of quarterly dividends, at the rate I'm progressing, my goal is to have my salary replaced in about 10 years.
#48
Bought our house on a 20yr note in Q4'18. Been making substantial extra payments for a year and a half, plan to have it paid off NLT the four year anniversary of closing this year.
"Smart money" says a better return comes from investing, comfort comes from not having to make a monthly debt service payment and saving over $100k in interest over the life of the loan.
"Smart money" says a better return comes from investing, comfort comes from not having to make a monthly debt service payment and saving over $100k in interest over the life of the loan.
#49
One philosophy isn’t necessarily better or worse then the other.
Where are you in your life?
If I’m 30 and I’ve just closed on a 30 year fixed at 2.5% and I have 30+ years to go in this industry then yes I might do it the other way.
Especially if I’m relatively low income with small kids and all that costing money the next 18-22 years.
None of the above though.
Investing a smaller amount over a longer period or a larger amount over a shorter period? Net result the same?
These two methods meet somewhere, they have a break even point.
Depending on which side of that point you are determines which method is preferable.
There, I’ve rationalized it for myself.
Now all I have to do is believe it.
Where are you in your life?
If I’m 30 and I’ve just closed on a 30 year fixed at 2.5% and I have 30+ years to go in this industry then yes I might do it the other way.
Especially if I’m relatively low income with small kids and all that costing money the next 18-22 years.
None of the above though.
Investing a smaller amount over a longer period or a larger amount over a shorter period? Net result the same?
These two methods meet somewhere, they have a break even point.
Depending on which side of that point you are determines which method is preferable.
There, I’ve rationalized it for myself.
Now all I have to do is believe it.
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