re: Pay off house vs invest.

The argument comes up frequently. I’m not debt adverse depending on rates. I don’t seek to rid myself of mortgages right now.

With a 2.875%, I would invest it. Even if it was higher, and thus a better return, the issue is always that until it’s either paid off, sold, recasted (if allowed), re-financed (going to be hard to beat that rate anytime soon), or you take out a HELOC or loan (which defeats the purpose), any of that Etta paid down is inaccessible/illiquid. Your payments don’t decrease (unless recasted or refinance) until it’s paid off.

That said, some people insist that it gives them peace of mind, plus it’s a guaranteed return (but you can get better guaranteed returns with interest rates higher). So clearly some find it useful to put more towards it. In that case, I think it’s good to not think of it at as an either/or. So you can both invest some and put the rest towards the mortgage.

quote:

---

Peace of mind is worth more than a sliding stock market.

---

You can put that $300k into a government money market account at 4.5% that’s fully liquid.

Peace of mind is making 100% sound financial decisions, and paying off your sub 3% mortgage is asinine.

quote:

---

I understand the other arguments, but I personally like the security. If shite hit the fan, or I got laid off, my month to month expenses are next to nothing. More importantly my family is safe if something were to happen to me. It’s a judgement call. For me, I like the piece of mind. Like I also said, your home is an investment that will continue to appreciate so not a bad place to be stashing it.

---

I’ll never understand this argument from an unemotional standpoint. If you got laid off, having $300k in cash and a peanuts mortgage rate would be a lot more valuable than having $300k in equity in a home, particularly in this rate environment.

That’s the thing. People can’t grasp the concept of good debt is used as leverage to make even more money.

quote:

---

People can’t grasp the concept of good debt is used as leverage

---

Exactly. That’s why it’s best to not have debt. You know how many arse bags I’ve known that took out low interest loans or ram up low interest credit card debt because some dickwad salesman told them they can make more interest on investing the money….then they either spend it on stupid crap, never invest it properly, or go to the casino?

Pay your shite off if you have the chance!

quote:

---

Exactly. That’s why it’s best to not have debt.

---

I mean it’s objectively better to have a sub 4% mortgage right now. It’s not even debatable.

The average Joe being financially illiterate doesn’t change the facts.

quote:

---

Exactly. That’s why it’s best to not have debt.

---

I disagree. I do think the majority of America is too stupid to understand how to use debt to their advantage, which are the assbags you know that change their spending habits because they think credit makes them rich. If you don’t view credit like an extension of your bank account then credit isn’t for you. If you let a salesman convince you to buy shite you don’t need, that’s on you. Don’t hate the game, hate the stupid assbag playa.

Not arguing. There’s great arguments for or against, but you give me an opportunity to pay off debt, I’ll take it every time…and I have.

Best of luck to everyone on their beliefs and strategies. It’s all about situation and mental comfort.

quote:

---

2.875/ ~26 years left.

---

quote:

---

300k

---

I'd take this bad boy off your hands if I could.

But seriously, don't even think about paying it off. If you have no idea what else to do with the money, put it all in a 5 year CD, pay your house off when the CD matures and buy your kid a car with the additional interest you'll make. That's worst case scenario.