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Primary residence paid off?

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View Poll Results: Mortgage paid off?
Yes and I am <40 yrs old
6
11.32%
Yes and I am 40-50
5
9.43%
Yes and I am 50-60
9
16.98%
No, less then 5 years to go
3
5.66%
No, less then 10 years to go
6
11.32%
No, donít care, has no priority, rather invest
24
45.28%
Voters: 53. You may not vote on this poll

Primary residence paid off?

Old 03-17-2022, 05:27 AM
  #1  
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Default Primary residence paid off?

Iím close, looking at April to have our house paid off, that will be 15 years out of a 30-year mortgage.
Friend of mine just paid off in 10 years out of 30.
Decided to not try and outsmart the market, so I know a 8% return on an investment is a win over a 3.75% mortgage but thatís an entire different belief system.
Iím talking Ramsey style thinking.
We could actually pay off today but the spousal unit is understandably not comfortable dumping all the savings down the hole with a war going on.
So this is not a should we - could we, this is just being curious.
Whoís making extra payments, who is close and how many years have you saved on your 15/30 year mortgage?
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Old 03-17-2022, 06:45 AM
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Financially it makes more sense to invest properly than to pay off the house as you have pointed out. However from a financial security standpoint, owning* your own home outright is a great safety net. So it depends on what you're seeking... financial security, or greater amounts of wealth. That's a personal decision.

(*you don't really own your own home due to property taxes, you just least it from the government like serfs)
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Old 03-17-2022, 06:57 AM
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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.
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Old 03-17-2022, 08:41 AM
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Originally Posted by SonicFlyer View Post
Financially it makes more sense to invest properly than to pay off the house as you have pointed out. However from a financial security standpoint, owning* your own home outright is a great safety net. So it depends on what you're seeking... financial security, or greater amounts of wealth. That's a personal decision.
)
I understand your point, because weíve got such a short time to go I donít think it will matter. Not compared to 15 years of interest.
So Iím pay off now run faster later.
Comfort is big, with the house paid off we can drop down to just one part time income if big things happen.
Youíre also now working for the fun things again, different motivation in life.
Iíll also be working to retire at 65-64-63-62-61-60?
But having the financial peace of being able to say f*ck it Iím done Iím gonna sell shrimp at a bait store and not loose your home is huge.
Not houseÖ.your home.

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.
Fantastic!

Last edited by TiredSoul; 03-17-2022 at 08:51 AM.
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Old 03-17-2022, 09:03 AM
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I'm <40 and have a 28 years left on a 30 year mortgage at 2.25%.....paying off the mortgage is the last priority.
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Old 03-17-2022, 09:15 AM
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Originally Posted by TipTanks View Post
I'm <40 and have a 28 years left on a 30 year mortgage at 2.25%.....paying off the mortgage is the last priority.
As a matter of fact, my house was paid off and last summer when I sensed the inflation coming I took out an 80% mortgage on it at 2.9%.

I figured I could do much better than that by investing the 380K. That hasnít been the case thus far but long term I still think I made the right decision.
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Old 03-17-2022, 09:41 AM
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Originally Posted by TipTanks View Post
I'm <40 and have a 28 years left on a 30 year mortgage at 2.25%.....paying off the mortgage is the last priority.
On a 30-year mortgage of $425k youíll pay $195k in interest over the duration.
https://www.bankrate.com/mortgages/a...on-calculator/
That requires an additional $500/month investment over 30 years at 6% with 3% inflation.
Just using online calculators Iím a complete noob as far as Finance is concerned.
Iím sure thereís a break even point somewhere where it does/does not make financial sense to pay off.
2.25% is that fixed?

Last edited by TiredSoul; 03-17-2022 at 09:53 AM.
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Old 03-17-2022, 11:16 AM
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The reality is that if you're not borrowing money, you're actually losing. How messed up is that?!?!

Inflation is 10% at least. Even if mortgage rates are 4%, that's a 6% spread.



But yeah, I agree, having a paid off home = more options.
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Old 03-17-2022, 01:54 PM
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Forget about inflation for this. Not relevant to the thinking. If I have a mortgage at 3%, and invest that money at 8%, I make money on the decision.

Add in tax deductions for the mortgage interest, paying down on principal which increases you home equity, It makes it a bit more complicated, but the rule holds.

I make money at low interest rates, if I invest those dollars in a diversified portfolio of stocks, mutual funds, or even a balanced fund (stocks and bonds.) if you stick that money in hole in the ground, you donít. Hope no one is that foolish. Not just me saying it, but my investment manager has shown me the numbers.
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Old 03-17-2022, 03:49 PM
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No better feeling than owing no one ANYTHING. Nothing, zip, zilch.
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