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?
03-17-2022, 05:27 AM
#1
All is fine at .79
Thread Starter
Joined APC: Sep 2016
Position: Paahlot
Posts: 4,082
Primary residence paid off?
I’m 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 that’s an entire different belief system.
I’m 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.
Who’s making extra payments, who is close and how many years have you saved on your 15/30 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 that’s an entire different belief system.
I’m 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.
Who’s making extra payments, who is close and how many years have you saved on your 15/30 year mortgage?
03-17-2022, 06:45 AM
#2
Gets Weekends Off
Joined APC: Apr 2017
Posts: 3,594
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)
(*you don't really own your own home due to property taxes, you just least it from the government like serfs)
03-17-2022, 06:57 AM
#3
The NeverEnding Story
Joined APC: Sep 2005
Posts: 7,512
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.
03-17-2022, 08:41 AM
#4
All is fine at .79
Thread Starter
Joined APC: Sep 2016
Position: Paahlot
Posts: 4,082
Originally Posted by SonicFlyer
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.
)
)
So I’m 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.
You’re also now working for the fun things again, different motivation in life.
I’ll 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 I’m done I’m gonna sell shrimp at a bait store and not loose your home is huge.
Not house….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.
Last edited by TiredSoul; 03-17-2022 at 08:51 AM.
03-17-2022, 09:15 AM
#6
Gets Weekends Off
Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,605
Originally Posted by TipTanks
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.
I figured I could do much better than that by investing the 380K. That hasn’t been the case thus far but long term I still think I made the right decision.
03-17-2022, 09:41 AM
#7
All is fine at .79
Thread Starter
Joined APC: Sep 2016
Position: Paahlot
Posts: 4,082
Originally Posted by TipTanks
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.
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 I’m a complete noob as far as Finance is concerned.
I’m sure there’s 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.
03-17-2022, 11:16 AM
#8
Gets Weekends Off
Joined APC: Apr 2017
Posts: 3,594
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.
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.
03-17-2022, 01:54 PM
#9
Gets Everyday Off
Joined APC: Aug 2016
Position: Relaxed
Posts: 6,940
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 don’t. Hope no one is that foolish. Not just me saying it, but my investment manager has shown me the numbers.
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 don’t. Hope no one is that foolish. Not just me saying it, but my investment manager has shown me the numbers.
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