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re: When does it make sense, mathematically, to accelerate mortgage payments?
Posted on 12/6/23 at 1:38 pm to Big Scrub TX
Posted on 12/6/23 at 1:38 pm to Big Scrub TX
quote:
Also, I just don't see the argument for feeling better about paying it down - it LOWERS your cash on hand. That seems LESS secure to me.
How much income do you need to cover your life expenses and a mortgage?
How much income do you need to cover just life expenses with no mortgage?
Would you say the second option is less than the first? If you need less income to sustain your life, does that increase the pool size of jobs that you could take and cover your needs/wants? Is there more security in having more job options? Is there a greater potential for finding the right job if you have more to pick from?
Not saying this is for everyone but there absolutely is more security for many folks when they have less allocated income to to pay debts.
EDIT: I should also add that as a sole provider for a family of 5, knowing that my house was owned completely by me would really reduce the stress of keeping a well paying job. If I had no mortgage and I lost my job, it would be super easy to find enough income to get us by.
This post was edited on 12/6/23 at 1:40 pm
Posted on 12/6/23 at 2:28 pm to notsince98
quote:In the alternate scenario, you are saving (and hopefully investing) thousands more per year that is readily on-hand in the instance of job loss.
EDIT: I should also add that as a sole provider for a family of 5, knowing that my house was owned completely by me would really reduce the stress of keeping a well paying job. If I had no mortgage and I lost my job, it would be super easy to find enough income to get us by.
I get what you are saying - I just think you are overpaying for basically the same peace of mind as carrying the mortgage and investing present cash.
ETA: if this is the kind of thing that really worries you, I would submit that perhaps you have too much house.
This post was edited on 12/6/23 at 2:31 pm
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