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Posted on 6/24/21 at 10:09 pm to Double Oh
youre going to get the guys that say, you want the write-off, dont do it, etc...
Dont listen to that noise!
Pay it off, HUGE relief of stress....
When my pay-off was down to $50k, I asked my financial adviser who also does my taxes what I should do at this point.
My rate was 3%
He stated at this point there wasnt much of a write-off benefit so pay it off.
Also asked if it would be more beneficial to continue making payments & just invest & grow the $50k, he said, pay it off.....
Majority of the time, my monthly payment was $1200 & I was paying $2500, wanted it behind me...
Now that $2500 goes into the market monthly, like i still have a house payment...
Dont listen to that noise!
Pay it off, HUGE relief of stress....
When my pay-off was down to $50k, I asked my financial adviser who also does my taxes what I should do at this point.
My rate was 3%
He stated at this point there wasnt much of a write-off benefit so pay it off.
Also asked if it would be more beneficial to continue making payments & just invest & grow the $50k, he said, pay it off.....
Majority of the time, my monthly payment was $1200 & I was paying $2500, wanted it behind me...
Now that $2500 goes into the market monthly, like i still have a house payment...
This post was edited on 6/24/21 at 10:16 pm
Posted on 6/24/21 at 10:12 pm to HarveyBanger
quote:
Stop the retirement savings for now and throw that at the mortgage then when thats paid off start back with the retirement savings
This is terrible advice.
Maybe to you it is. How about cut in half what u saving for retirement? and the other half to the mortgage
Posted on 6/24/21 at 10:17 pm to Double Oh
That’s not what you said. You said stop retirement savings. There’s a massive difference.
Posted on 6/24/21 at 10:37 pm to MrJimBeam
quote:
That’s not what you said. You said stop retirement savings. There’s a massive difference.
Ok well what im saying is maybe cut it in half. I stopped my savings to pay off the mortgage and it really hasnt hurt my retirement. Sure it wont grow as you would like it when u stop contributing but i sure and hell sleep good at nite with the mortgage paid off and now i contribute alot more than i ever have
Posted on 6/24/21 at 10:37 pm to Double Oh
quote:
Stop the retirement savings for now and throw that at the mortgage then when thats paid off start back with the retirement savings
This advice is up there with Tell your wife she looks fat, Piss on spark plug, and Your Honor, F you.
Posted on 6/24/21 at 10:40 pm to Turf Taint
quote:
Stop the retirement savings for now and throw that at the mortgage then when thats paid off start back with the retirement savings
This advice is up there with Tell your wife she looks fat, Piss on spark plug, and Your Honor, F you.
To each is own it didnt affect me one bit when i stopped my savings
Posted on 6/25/21 at 8:11 am to Double Oh
quote:
Stop the retirement savings for now and throw that at the mortgage then when thats paid off start back with the retirement savings
Whatever you do, dont do this
Posted on 6/25/21 at 8:34 am to LSUisKING12
quote:
I am hoping to use all of the money from that job to pay off our mortgage in hopefully the next ten years.
If it is a 10 year payoff on the mortgage, i would typically recommend putting the extra money into your retirement instead of the mortgage. 10 years is still a long time and your return in the market should double on the early contributions.
If you were to pay off the mortgage in 2 or 3 years, i would recommend the opposite (free up the debt and you still have plenty of years to dollar cost average your contributions to retiremeng).
However
quote:
I just would really like to have our house paid off by the time our oldest goes to college in 12 years.
I think that is a reasonable personal goal. And it makes sense. You have a future debtload obligation and you want to pay off a current one before getting into a second one.
Do what you feel is best. I dont have any issue with either option. The fact that you are planning 10+ years out and you have the means to be creative is great.
Posted on 6/25/21 at 8:50 am to turkish
quote:
I’d still owe several hundred for taxes and insurance, I realized the ‘peace of mind’ factor was a myth. I will always owe somebody for my house, whether I have a mortgage or not. I’ll keep my low rate, thank you.
this highly depends on where you live. For example, in TX where property taxes are sky high, you do still end up with a sizable monthly payment for everything that can define minimum income limits.
Where I live, property taxes and insurance are cheap. So without a mortgage payment, I would be able to pay the property taxes and insurance while working minimum wage and still have money for food, gas, etc. So for me, knowing that if I got laid off or wanted to retire and work a part time job, knowing I could stay in my house with just about any job out there would be highly reassuring.
Posted on 6/25/21 at 9:21 am to Double Oh
quote:
Maybe to you it is. How about cut in half what u saving for retirement? and the other half to the mortgage
There is a huge opportunity cost when you stop saving for retirement (deferral of taxes alone can be huge (eg, 24% or higher) + the time value from retirement growth (8+% or higher, for example). You forego 32+%.
To save 3% on mortgage interest is going 29% in the red.
Whether you partially or totally trade retirement for early payoff, this is flushing value down the drain.
For example, my net worth today is ~20% higher than it otherwise would have been if I stopped investing during 2008 housing bubble that put the economy on its knees as well 2020 Covid economy. Had I stopped, this 20%% does not exist for me.
Posted on 6/25/21 at 9:26 am to notsince98
I’m paying mine off early, I’m just using money that would be wasted elsewhere though and continuing to invest. I just want the piece of mind .
If you are worried about the taxes and insurance, my plan is to pay them annually. It is only about 5-6k for me, and that will be nothing once I don’t have a mortgage payment every month
If you are worried about the taxes and insurance, my plan is to pay them annually. It is only about 5-6k for me, and that will be nothing once I don’t have a mortgage payment every month
Posted on 6/25/21 at 9:32 am to Double Oh
It most certainly did. You just don’t understand opportunity cost.
Posted on 6/25/21 at 9:43 am to LSUisKING12
In your case the answer is an unequivocal yes, given you’re already planning how to spend money from a second job you have not started. .
Posted on 6/25/21 at 11:06 am to cgrand
quote:
people that have paid off their mortgage will tell you its the best thing they've ever done for themselves.
people who have not, will tell you its a dumb financial decision.
It would be very difficult to convince a person with a paid for house to mortgage the house no matter how great the math makes doing so look. There is more involved in making major financial decisions than math, emotional impact is a real thing, and important to consider..
Posted on 6/25/21 at 11:18 am to LSUisKING12
I really think we should have a designated permanent thread titled “Info for people that want to know should I invest or payoff mortgage”. It could be a one stop shop for those people that way it doesn’t have to be hashed out on this board every couple days. You always hear the same things mentioned over and over on both sides of the argument. While both sides of the argument have valid points we read it on every thread made like this. Really does bog down this board.
Posted on 6/25/21 at 4:42 pm to LSUisKING12
Yes. Do it.
Posted on 6/25/21 at 6:11 pm to notsince98
Actually, taxes and insurance can equal or surpass P&I at any location. One could just as easily say it ‘highly depends’ on the loan terms.
As such, being a single oops away from not paying the mortgage is not much different than being a single mistake away from not being able to pay taxes and insurance. Maybe you really trust your .gov and insurance co to do you a solid.
As such, being a single oops away from not paying the mortgage is not much different than being a single mistake away from not being able to pay taxes and insurance. Maybe you really trust your .gov and insurance co to do you a solid.
This post was edited on 6/25/21 at 6:19 pm
Posted on 6/25/21 at 6:35 pm to LSUisKING12
Pay off all your debt then invest
Posted on 6/25/21 at 7:49 pm to LSUFORLIFE
Make 10+% a year in an ETF. That will make you a lot more money in the long run vs paying off a 3% interest loan. You will also have an emergency fund by going the ETF route.
I'll use my current home loan (3.375% interest) vs using the S&P 500 yearly average gains (10%).
If I pay $500 extra a month, I save 35k in total interest. It would shorten my loan by 69 months.
If I bought $500 of SPY or QQQ each month for the same 171 months, I would earn 97K in interest.
I'll use my current home loan (3.375% interest) vs using the S&P 500 yearly average gains (10%).
If I pay $500 extra a month, I save 35k in total interest. It would shorten my loan by 69 months.
If I bought $500 of SPY or QQQ each month for the same 171 months, I would earn 97K in interest.
This post was edited on 6/25/21 at 8:13 pm
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