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Started By
Message
Paying off Home Peace of Mind vs Controlling One's Time Sooner
Posted on 2/27/26 at 10:20 am
Posted on 2/27/26 at 10:20 am
Know the topic of payoff mortgage (accelerated) vs. not is topic well discussed on this board over the years.
I appreciate those who seek to payoff their home to have full peace of mind of full home ownership. I think it's still key part of the American dream! Your peace of mind is personal. Not for me/anyone to challenge.
Having recently crossed threshold into retirement, wish to share my perspective for those who may not yet have landed one-way or the other.
Context:
- I recently retired (7-10years earlier than avg)
- Have lived through some of lowest historical interest rates
- Have always subscribed to taking advantage of low interest loans, investing for positive spread ($ for home at 2.8% interest rate or 12% in market = 9.2% to the compounding interest machine, for example).
- Investing objective for wealth-building quicker > home ownership
- Have bought/sold 8 homes across career. Made money on 75%, broke even or lost money on 25%. Worked for company with great relocation support that covered most losses (ie, a blessing I realize not all have).
A huge reason underpinning the ability to retire 7-10 years earlier than avg is compounding value created from NOT paying off home, while enjoying very low interest rates. This was always the objective. Retire in 50s.
Now that I have "arrived" (ie, to retirement), wish to share this perspective. I cannot understate how much "peace of mind" comes from having control of one's time -- God-willing, 7-10 years worth early. Simply put, its an incredible feeling.
For those set on home ownership as creating similar incredible feeling, I salute you. For those on the bubble, I advocate for time ownership! While the interest rate world will likely never be like the one I lived through during my working years, I think similar investment philosophy and opportunity will exist.
Sharing in particular for those early in their careers and home ownership.
Lastly, and importantly, wish to be clear. Your home is not to be viewed as an asset like a stock, bond or cash. It is a place of life, memories, security (ie, peace of mind for me, as well). I present as trade-off point only (either pay off mortgage or invest for positive spread).
Welcome counterpoints!
To me, control of time > peace of mind of home ownership, that certainly would have added 7+ years to working life. Time!
Today, still have not paid off home. Have cash (+) to payoff mortgage tomorrow. So, the option to do so has been there for quite a few years.
I appreciate those who seek to payoff their home to have full peace of mind of full home ownership. I think it's still key part of the American dream! Your peace of mind is personal. Not for me/anyone to challenge.
Having recently crossed threshold into retirement, wish to share my perspective for those who may not yet have landed one-way or the other.
Context:
- I recently retired (7-10years earlier than avg)
- Have lived through some of lowest historical interest rates
- Have always subscribed to taking advantage of low interest loans, investing for positive spread ($ for home at 2.8% interest rate or 12% in market = 9.2% to the compounding interest machine, for example).
- Investing objective for wealth-building quicker > home ownership
- Have bought/sold 8 homes across career. Made money on 75%, broke even or lost money on 25%. Worked for company with great relocation support that covered most losses (ie, a blessing I realize not all have).
A huge reason underpinning the ability to retire 7-10 years earlier than avg is compounding value created from NOT paying off home, while enjoying very low interest rates. This was always the objective. Retire in 50s.
Now that I have "arrived" (ie, to retirement), wish to share this perspective. I cannot understate how much "peace of mind" comes from having control of one's time -- God-willing, 7-10 years worth early. Simply put, its an incredible feeling.
For those set on home ownership as creating similar incredible feeling, I salute you. For those on the bubble, I advocate for time ownership! While the interest rate world will likely never be like the one I lived through during my working years, I think similar investment philosophy and opportunity will exist.
Sharing in particular for those early in their careers and home ownership.
Lastly, and importantly, wish to be clear. Your home is not to be viewed as an asset like a stock, bond or cash. It is a place of life, memories, security (ie, peace of mind for me, as well). I present as trade-off point only (either pay off mortgage or invest for positive spread).
Welcome counterpoints!
To me, control of time > peace of mind of home ownership, that certainly would have added 7+ years to working life. Time!
Today, still have not paid off home. Have cash (+) to payoff mortgage tomorrow. So, the option to do so has been there for quite a few years.
This post was edited on 2/27/26 at 10:21 am
9
Posted on 2/27/26 at 10:55 am to Everyday Is Saturday
I personally would enter into retirement with owing money on my main residence, but to each his own.
Posted on 2/27/26 at 12:31 pm to Everyday Is Saturday
I would add that the only way the control of time > peace of mind of home ownership, is if you are putting that extra money that you would normally put towards the mortgage into an investment account.
I have heard this talking point from a lot of people over the years, and when we really dig into it, they are paying the minimum monthly balance but not putting that extra into an investment vehicle. Or in the case of some people in my parents age bracket, they are putting he funds in CDs or annuities.
I do not plan to enter into retirement with a mortgage. I want that free cash flow. But with that said, we are not killing ourselves with paying a significant amount more each month, just a few hundred dollars extra. And if all goes according to my retirement age plan, my balance will paid off about 1 year before I plan to retire.
I have heard this talking point from a lot of people over the years, and when we really dig into it, they are paying the minimum monthly balance but not putting that extra into an investment vehicle. Or in the case of some people in my parents age bracket, they are putting he funds in CDs or annuities.
I do not plan to enter into retirement with a mortgage. I want that free cash flow. But with that said, we are not killing ourselves with paying a significant amount more each month, just a few hundred dollars extra. And if all goes according to my retirement age plan, my balance will paid off about 1 year before I plan to retire.
Posted on 2/27/26 at 12:39 pm to Weekend Warrior79
Mid 30s. I completely lucked out with the sub 3% rates during covid so I don't pay any extra on my mortgage. It's tempting, but I keep only what I need in checking and money market while investing the rest.
As already stated, it only works if you actually do the investing.
As already stated, it only works if you actually do the investing.
Posted on 2/27/26 at 12:50 pm to Cliff Booth
It only works if your investments are productive. There is risk there too.
Posted on 2/27/26 at 1:04 pm to ynlvr
For sure. Personally I keep it simple and only think about the long term.
If the two options are pay off your house or day trade... then yeah, pay off the house
If the two options are pay off your house or day trade... then yeah, pay off the house
Posted on 2/27/26 at 1:11 pm to Everyday Is Saturday
Good points. The math works a little differently when you're at 6.5% on the mortgage unfortunately! That risk and tax free rate of return is hard to pass up.
Posted on 2/27/26 at 1:17 pm to Drive4show
just turned 60, got about 9 yrs left on mortgage at 2 125%. We could pay it off fairly easily (less than 100k) but we've got other bills approaching that aren't optional
Posted on 2/27/26 at 2:21 pm to Everyday Is Saturday
I retired at 61 and paid off my house.
I maxed every retirement option I had up to around about $90k per year over the last decade.
I had a 3% mortgage, but I just wanted to pay it off. The amount left on the 15 year mortgage was not enough interest to outdo the $24000 standard deduction for us.
I realize I could have just invested the payoff, but I just wanted it over. I have zero debt.
I maxed every retirement option I had up to around about $90k per year over the last decade.
I had a 3% mortgage, but I just wanted to pay it off. The amount left on the 15 year mortgage was not enough interest to outdo the $24000 standard deduction for us.
I realize I could have just invested the payoff, but I just wanted it over. I have zero debt.
Posted on 2/28/26 at 8:13 am to Everyday Is Saturday
I paid off mine at an interest rate yall would all tell me is crazy to do. I’m not disciplined enough to invest the money safely and this is a sure bet for me. I don’t regret it one bit.
Posted on 2/28/26 at 9:07 am to Craft
quote:
I’m not disciplined enough to invest the money safely and this is a sure bet for me.
Congratulations!
Curious...if you were disciplined enough to pay off the low interest mortgage, why would your discipline be different had you made auto-investments into say a MF?
Well done, nonetheless.
Post is to make point that "peace of mind" exists on both sides of trade off. That said, what's right for you is what's right for you.
We are enjoying "peace of mind" that comes with control of time sooner given choice of investment vs. mortgage paydown (that was VERY low in our case, as well). I am new to retirement. It is really incredible feeling; hence, why wished to make the post...especially for those early in the trade off decision.
Do not underestimate the value of controlling one's time asap.
Congrats!
This post was edited on 2/28/26 at 9:11 am
Posted on 2/28/26 at 9:28 am to Drive4show
quote:
Good points. The math works a little differently when you're at 6.5% on the mortgage unfortunately! That risk and tax free rate of return is hard to pass up.
Hear you! True.
As interest rates float down, might consider staying nimble and changing game plan when positive spread reaches attactive level for you.
S&P 500 CAGR last 20yrs = 7.7%, for example. No prediction of future...yada, yada, of course. But long-term (commensurate with mortgage term) head room for positive spread to earn control and time. And, always have the option of using investments towards same mortgage at any point in time. "Peace of Mind" trade off option is always there.
What's comfortable/right for you is personal.
Sharing what it feels like on the other side (recognizing that our timeline / context is not same for all). Time value of money feels so much better after having created 7-10years of time...that is valuable in ways I never quite realized in the lead up to this point.
Good luck!
This post was edited on 2/28/26 at 9:34 am
Posted on 2/28/26 at 11:25 am to Everyday Is Saturday
I will be paying off almost all principal by the time I reach retirement so I don't see the benefit of accelerating the payment. The bank can wait on their money.
Posted on 2/28/26 at 1:45 pm to MSTiger33
We bought less house than we could afford, paid it off when I was 40, and have had zero debt since. Socked away the savings in retirement accounts and other savings.
When I retire, I hope to buy a nice home in another state and, if interest rates are not too high, finance it on the 30 year plan. Or 100 year plan if they’ll let me.
Like Jack Handey said, “When I die, I hope people say of me, ‘Gee, that guy owed me a lot of money.’l
When I retire, I hope to buy a nice home in another state and, if interest rates are not too high, finance it on the 30 year plan. Or 100 year plan if they’ll let me.
Like Jack Handey said, “When I die, I hope people say of me, ‘Gee, that guy owed me a lot of money.’l
Posted on 2/28/26 at 2:33 pm to Everyday Is Saturday
For some it's just the guarantee of paying off the mortgage. You are in control.
Investments aren't a guarantee, though the money printer fueled markets seem to have no brakes.
Investments aren't a guarantee, though the money printer fueled markets seem to have no brakes.
Posted on 2/28/26 at 2:36 pm to Everyday Is Saturday
quote:
Curious...if you were disciplined enough to pay off the low interest mortgage, why would your discipline be different had you made auto-investments into say a MF?
Because I’m terrible about starting out with safe ETFs but the second the market dips on something like nbis, selling it and moving it there thinking I’m buying a dip. Then it’s a 7 layer dip.
Posted on 2/28/26 at 2:56 pm to Everyday Is Saturday
I've got 5 more yrs left on my mortgage, when it's paid off I'm selling and down sizing. I figure I'll be able to add another 150k to my retirement by selling my current house and building a smaller one.
Posted on 2/28/26 at 2:59 pm to Craft
I would keep the 3% mortgage until I was 100 if I could. Paying off my home gives me zero peace of mind. I still have $10K+ required to pay every year in taxes and insurance so let’s not act like I ever truly own my home.
This post was edited on 2/28/26 at 3:00 pm
Posted on 2/28/26 at 5:49 pm to ynlvr
quote:
It only works if your investments are productive.
Assuming 30-year mortgage…or even 20-year…
If I have learned nothing else in my investing life, never bet against human greed. Over time, it is certain as the sun rising in the east.
The value of potentially retiring 7-10years early…now having done it…is nothing short of an incredible feeling. Don’t underestimate it or human greed. My 2 cents.
Posted on 2/28/26 at 5:58 pm to lynxcat
quote:
I would keep the 3% mortgage until I was 100
2.8% here. Will keep it until 100 or move to Moon/Mars, whichever is later!
The commensurate investment (to payoff mortgage, as an option) has earned AFIT 8% in congruent period to mortgage.
5.2% positive spread has generated some nice cash towards retiring early.
I’m in newly retired after-glow period now! Hence the post.
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