Would you pay off mortgage in my situation?

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frugaltigris
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Would you pay off mortgage in my situation?

Post by frugaltigris » Mon Jun 18, 2018 1:25 pm

Fellow Boglheads,

Sorry for bringing up another mortgage pay off thread. But I will be grateful for all your advise. I have a 3.375% 30 year mortgage with 200 monthly payments and 130K principal left. I am thinking to pay it off in next couple of months. That will use all liquidity except in our emergency fund (20K) and I would save about 37K in remaining mortgage interest. I am inclined on paying it off as it gives definite return of 3.375%, but with rising interest rates I am worried of the lost opportunities in near future where I can earn more than this rate. I am very conservative in investments so I would be looking for some sort of CDs, munis to beat mortgage interest rate. I am not thinking to put this money in taxable to beat the rate.

Some more info: I am in early 40's, max all tax advantaged space and have a very stable job. DW and I will be in 25% bracket in 2018.

Please share your thoughts, if you would pay off in my situation. If not, where shall I invest to get a safe return beating 3.375%. I invest with Fidelity.
I will be grateful for your thoughts and any criticism.

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tainted-meat
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Re: Would you pay off mortgage in my situation?

Post by tainted-meat » Mon Jun 18, 2018 1:28 pm

If your choices are restricted to buying CDs or paying off the mortgage, then I would pay off the mortgage at current interest rates.

I would give myself more options and utilize the taxable account for a Total International Stock Market Index at current valuations.

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Re: Would you pay off mortgage in my situation?

Post by ThePrince » Mon Jun 18, 2018 1:29 pm

Pay it off, the mortgage isn’t a pet; don’t keep it around.

a5ehren
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Re: Would you pay off mortgage in my situation?

Post by a5ehren » Mon Jun 18, 2018 1:32 pm

tainted-meat wrote:
Mon Jun 18, 2018 1:28 pm
If your choices are restricted to buying CDs or paying off the mortgage, then I would pay off the mortgage at current interest rates.

I would give myself more options and utilize the taxable account for a Total International Stock Market Index at current valuations.
+1. If you have 130K liquid, that should be deployed in taxable accounts that earn more than 3.375%.

If for whatever reason you are not willing/able to do this, then paying off your mortgage is fine, assuming no other debts at higher interest rates.

frugaltigris
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Re: Would you pay off mortgage in my situation?

Post by frugaltigris » Mon Jun 18, 2018 1:37 pm

Thanks. No other debt. And I am not of the kind to view mortgage as a debt. I am just too conservative to deploy all savings in taxable in stocks.
a5ehren wrote:
Mon Jun 18, 2018 1:32 pm
tainted-meat wrote:
Mon Jun 18, 2018 1:28 pm
If your choices are restricted to buying CDs or paying off the mortgage, then I would pay off the mortgage at current interest rates.

I would give myself more options and utilize the taxable account for a Total International Stock Market Index at current valuations.
+1. If you have 130K liquid, that should be deployed in taxable accounts that earn more than 3.375%.

If for whatever reason you are not willing/able to do this, then paying off your mortgage is fine, assuming no other debts at higher interest rates.

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Re: Would you pay off mortgage in my situation?

Post by lotusflower » Mon Jun 18, 2018 2:07 pm

Personally not a fan of paying off cheap mortgages since it's hard to appreciate the value of liquidity until you need it but don't have it. 20k sounds like a pretty small emergency fund for two people, so it seems unduly risky to pay off the whole thing until you have more cash around.

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greg24
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Re: Would you pay off mortgage in my situation?

Post by greg24 » Mon Jun 18, 2018 2:09 pm

I would pay it off, if I were in your situation.

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Pajamas
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Re: Would you pay off mortgage in my situation?

Post by Pajamas » Mon Jun 18, 2018 2:41 pm

If you think interest rates will rise then why buy the equivalent of an 8 a 16 year, 3.375% CD that doesn't return the principle but wipes out your liquidity by tying it up in your house? It seems like you are a very conservative investor and that doesn't seem conservative.
Last edited by Pajamas on Mon Jun 18, 2018 3:32 pm, edited 2 times in total.

mortfree
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Re: Would you pay off mortgage in my situation?

Post by mortfree » Mon Jun 18, 2018 3:00 pm

Will you move in the near future?

Will you need to borrow money for any other expenses - Home improvements, new cars, college (if you have kids), etc? You may never see loan terms as cheap as your mortgage

What is your current mortgage payment and how long until you recoup that dollar amount?

If you do pay it off where you will put the money you used to use for the mortgage.

I would not pay it off given the limited info you provided. Consider that it does not have to be an all or nothing event. You could pay down your mortgage to 50k or some other balance that is comfortable to you.

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Re: Would you pay off mortgage in my situation?

Post by KlangFool » Mon Jun 18, 2018 3:06 pm

OP,

1) What is your net worth besides the house? Would you put too much your eggs into the house basket if you pay off the house?

2) What is your Asset Allocation? You could invest that 130K based on your AA. Put that 130K into the 100% stock index fund and adjust your tax-deferred account investment accordingly.

3) I would not pay this off. I feel safer by not paying the mortgage off.

KlangFool

frugaltigris
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Re: Would you pay off mortgage in my situation?

Post by frugaltigris » Mon Jun 18, 2018 3:09 pm

Thank you everyone.

No I do not plan to move (hopefully ever).

Apart from kid's college (in 8 years; he has a decent 529), I do not see a major event requiring a big chunk of money. We drive old reliable cars. Live frugally.

Current mortgage is $831 (principal + interest).

If I pay off all mortgage, I plan to use cash flow in a taxable account with 60/40 asset allocation.

mortfree wrote:
Mon Jun 18, 2018 3:00 pm
Will you move in the near future?

Will you need to borrow money for any other expenses - Home improvements, new cars, college (if you have kids), etc? You may never see loan terms as cheap as your mortgage

What is your current mortgage payment and how long until you recoup that dollar amount?

If you do pay it off where you will put the money you used to use for the mortgage.

I would not pay it off given the limited info you provided. Consider that it does not have to be an all or nothing event. You could pay down your mortgage to 50k or some other balance that is comfortable to you.

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Pajamas
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Re: Would you pay off mortgage in my situation?

Post by Pajamas » Mon Jun 18, 2018 3:14 pm

frugaltigris wrote:
Mon Jun 18, 2018 3:09 pm
If I pay off all mortgage, I plan to use cash flow in a taxable account with 60/40 asset allocation.
Then it might make sense to use 40% of the cash to pay down the mortgage and the rest to buy equities in your taxable account. Then allocate your free cash flow the same way. In other words, the additional mortgage principle payments would substitute for the 40% bonds you would otherwise hold.

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Re: Would you pay off mortgage in my situation?

Post by frugaltigris » Mon Jun 18, 2018 3:14 pm

Net worth is 300K only. If I pay off house fully, then it will be 50% of my total net worth.

Asset allocation in my tax advantaged accounts (including 403(b), 457, Roth and HSA) is 60:30:10 (stocks:bonds:cash)
KlangFool wrote:
Mon Jun 18, 2018 3:06 pm
OP,

1) What is your net worth besides the house? Would you put too much your eggs into the house basket if you pay off the house?

2) What is your Asset Allocation? You could invest that 130K based on your AA. Put that 130K into the 100% stock index fund and adjust your tax-deferred account investment accordingly.

3) I would not pay this off. I feel safer by not paying the mortgage off.

KlangFool

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Sandtrap
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Re: Would you pay off mortgage in my situation?

Post by Sandtrap » Mon Jun 18, 2018 3:15 pm

Why not do both concurrently?
Pay down your mortgage substantially.
Save and invest substantially.
j

JoeRetire
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Re: Would you pay off mortgage in my situation?

Post by JoeRetire » Mon Jun 18, 2018 3:19 pm

frugaltigris wrote:
Mon Jun 18, 2018 1:25 pm
I have a 3.375% 30 year mortgage with 200 monthly payments and 130K principal left. I am thinking to pay it off in next couple of months. That will use all liquidity except in our emergency fund (20K) and I would save about 37K in remaining mortgage interest. I am inclined on paying it off as it gives definite return of 3.375%, but with rising interest rates I am worried of the lost opportunities in near future where I can earn more than this rate.
I think it's very reasonable to suspect that somewhere over the next 200 months interest rates will rise enough so that 3.375% will seem to you like the historically cheap money that I feel it is.
Please share your thoughts, if you would pay off in my situation.

I wouldn't pay it off. But I'm not as extremely conservative as you appear to be, and I don't lose any sleep over holding a mortgage that I can pay with ease. I also don't want to use up so much liquidity.

soccerrules
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Re: Would you pay off mortgage in my situation?

Post by soccerrules » Mon Jun 18, 2018 3:26 pm

Pay it off if you want to. I think about paying mine off early every month ($80K, 4.125, 5.5 yrs left)

I think Liquidity would be a little bit of a concern if you have a small EF and everything else in .

It appears you have changed your mind from "conservative CD's Munis" to after paying mortgage off going to "Taxable 60/40 AA" -- OK to change your thinking, just make sure you are committed to a plan. Putting money in the market you should be thinking minimum 6-8 years more like 10 years.

Not sure the value of your house, value of the tax deferred and then Net Worth to see if this is the BEST decision for you at this time.
Don't let your outflow exceed your income or your upkeep will be your downfall.

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Re: Would you pay off mortgage in my situation?

Post by Church Lady » Mon Jun 18, 2018 3:30 pm

OP,

I would not tie up all my cash leaving only $20K if I were you. It's not like you can sell a few square feet of your living room when you need extra cash. If you suddenly needed cash, where would you borrow at 3.375% ?

Could you take a part of your cash and recast your mortgage? The term and interest rate stay the same; you're basically buying a lower mortgage payment. You need to call your mortgage company and ask if such a thing is possible, what the fees are, and how much interest you save.

I'm not saying definitely recast your mortgage; I'm just mentioning it as another option for you to consider that's not as extreme as using every penny of free cash to pay off the mortgage.

To get good advice on how to invest your 130K of cash, I think you need to post in this format: viewtopic.php?f=1&t=6212

I took at quick look at fixed income options on Fidelity's site. Already, you can get a 5 year CD that pays 3.3%. A ten year CD pays 3.6%. With 200 payments that's what, 200/12 = about 17 years? A ten year CD is paying 3.6%, more than your mortgage rate.

The Fed indicated two more rate hikes this year. I wouldn't be in a hurry to buy a 5 or 10 year CD. In my opinion, your instinct not to tie up cash in the face of rising interest rates is correct.

Note that I am not a professional, just a layperson with opinions. Good luck!
He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase: this is also vanity. Ecclesiastes 1:8

KlangFool
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Re: Would you pay off mortgage in my situation?

Post by KlangFool » Mon Jun 18, 2018 3:44 pm

frugaltigris wrote:
Mon Jun 18, 2018 3:14 pm
Net worth is 300K only. If I pay off house fully, then it will be 50% of my total net worth.

Asset allocation in my tax advantaged accounts (including 403(b), 457, Roth and HSA) is 60:30:10 (stocks:bonds:cash)
KlangFool wrote:
Mon Jun 18, 2018 3:06 pm
OP,

1) What is your net worth besides the house? Would you put too much your eggs into the house basket if you pay off the house?

2) What is your Asset Allocation? You could invest that 130K based on your AA. Put that 130K into the 100% stock index fund and adjust your tax-deferred account investment accordingly.

3) I would not pay this off. I feel safer by not paying the mortgage off.

KlangFool
frugaltigris,

Then, in term of diversification and liquidity, it is safer not to pay off the mortgage. Put this 130K into 100% stock index fund. Then, move a fair amount of the stock into the bond index fund for your tax-advantaged account.

KlangFool

SelfEmployed123
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Re: Would you pay off mortgage in my situation?

Post by SelfEmployed123 » Mon Jun 18, 2018 3:55 pm

The interest rate on your mortgage is near historic lows. On the other hand, there is real benefit to being completely debt free. If I were you I would ask myself one question: What do you think will help you sleep best at night?

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Re: Would you pay off mortgage in my situation?

Post by soccerrules » Mon Jun 18, 2018 4:23 pm

SelfEmployed123 wrote:
Mon Jun 18, 2018 3:55 pm
The interest rate on your mortgage is near historic lows. On the other hand, there is real benefit to being completely debt free. If I were you I would ask myself one question: What do you think will help you sleep best at night?
The OP may not have experienced not having liquid cash on hand. If they have had EF, Cash in savings and maturing CD's --they may have always had liquidity. There is a trade off here.
They pay off the mortgage and that feels great, but what if they can not sleep at night for fear of NOW needing cash because they are no longer as liquid. Yes they can use the $831/mo to build up their liquidity and perhaps use a HELOC, and worse case reverse mortgage. (but those put them back into paying interest)

As in other similar threads-- maybe the wise decision would be to do both. Pay lump sum toward mortgage, maybe even recast/refi to 15 yr note-then increase taxable savings at the same time. Then re-evaluate in 3 years.
Don't let your outflow exceed your income or your upkeep will be your downfall.

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Re: Would you pay off mortgage in my situation?

Post by Meg77 » Mon Jun 18, 2018 4:29 pm

In your situation and with your risk tolerance, I'd pay it off in a heartbeat.

You *might* get a slightly better yield after taxes and fees with future CD or muni options, but likely not enough to make it worth the hassle. Think about it - even if you manage to earn a whole percentage point extra over your mortgage rate somewhere, that's only about $1300 a year or $108 a month in year one (which would decrease annually as the mortgage balance decreases). I bet your peace of mind and the increased cash flow you'll have by paying the mortgage off is worth $100 a month. And again, that assumes you can earn 4.3% consistently and safely.
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Re: Would you pay off mortgage in my situation?

Post by stan1 » Mon Jun 18, 2018 7:16 pm

I would only pay off my mortgage if I was maxing out tax advantaged account contributions (401K and IRA) and if I also had a six figure taxable investing account invested in holdings like Total Stock Market and Total International Stock Market. You don't want to become house poor.

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Re: Would you pay off mortgage in my situation?

Post by fundseeker » Mon Jun 18, 2018 7:19 pm

Sandtrap wrote:
Mon Jun 18, 2018 3:15 pm
Why not do both concurrently?
Pay down your mortgage substantially.
Save and invest substantially.
j
+1 for this. It really does not have to be all or nothing. You could add say $5k or $10k to principal each month and it'll be gone in a year or two, and in the meantime, you would not have been left with such a small EF.

Also, have you considered funding Roths for both of you with some of that cash? There are many benefits to Roths, and the sooner you start them the better. Good luck with your decision.

frugaltigris
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Re: Would you pay off mortgage in my situation?

Post by frugaltigris » Mon Jun 18, 2018 7:34 pm

Thank you everyone. All these suggestions are very helpful as they are forcing me to think outside my comfort zone. From overall responses, I am realizing that despite still being far away from retirement and with a very stable job, I am extremely risk aversive. It will be good to change my thinking and probably take some more risk and overcome my fears.

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Re: Would you pay off mortgage in my situation?

Post by mortfree » Mon Jun 18, 2018 7:48 pm

frugaltigris wrote:
Mon Jun 18, 2018 7:34 pm
Thank you everyone. All these suggestions are very helpful as they are forcing me to think outside my comfort zone. From overall responses, I am realizing that despite still being far away from retirement and with a very stable job, I am extremely risk aversive. It will be good to change my thinking and probably take some more risk and overcome my fears.
Does that include the risk you are taking if you payoff the mortgage “tomorrow”?

Just want to be sure you realize that

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Re: Would you pay off mortgage in my situation?

Post by thx1138 » Mon Jun 18, 2018 8:33 pm

Best advice given so far is to split the difference - pay off a good chunk and invest the rest. A $20K emergency fund is rather small so you'll want more liquidity than that I think. Say pay down by $65K and invest the other $65K. That invested $65K while volatile if in a stock fund is at least liquid in a crisis.

An important step if you do this is to get your mortgage recasted after you pay it down. Recasting preserves your current low interest rate but lowers the monthly payment to reflect your lower balance. Most mortgages can be recast after a significant pay down for free or a low fee. By all means continue to pay your original monthly payment to get the mortgage paid off well before 30 years - but the point is in a crisis rather than be obligated to pay your original monthly payment you'll only be obligated to pay a much lower payment which will greatly improve cash flow in a crisis.

As to the "just wait a few years and you'll find a higher yield safe investment" that is probably true, but it has been probably true for a number of years now and still hasn't happened. You say you've got about 16 years left on the mortgage so the comparison to make is to a treasury of the same length. Well right now the 20 yr is 2.98% and even the 30 yr is just 3.05%. That means on average the entire "intelligence" of the bond market is expecting your "historically low" mortgage rate to still be higher than treasuries for the life of your loan. So I'd recommend basing your decision not on wishful thinking about future interest rate bumps but rather on the reality of the market now and the market's best estimate of the future.

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Re: Would you pay off mortgage in my situation?

Post by grabiner » Mon Jun 18, 2018 11:03 pm

frugaltigris wrote:
Mon Jun 18, 2018 1:25 pm
Sorry for bringing up another mortgage pay off thread. But I will be grateful for all your advise. I have a 3.375% 30 year mortgage with 200 monthly payments and 130K principal left. I am thinking to pay it off in next couple of months. That will use all liquidity except in our emergency fund (20K) and I would save about 37K in remaining mortgage interest. I am inclined on paying it off as it gives definite return of 3.375%, but with rising interest rates I am worried of the lost opportunities in near future where I can earn more than this rate.
See Paying down loans versus investing on the wiki.

As you indicated, you should compare the 3.375% to low-risk returns, but you should also match duration. You have 200 monthly payments left, which means that the effective duration for paying down your mortgage (weighted average of the time until all future payments) is about eight years. If you invested the money in Admiral shares of Vanguard Long-Term Tax-Exempt, you would get a yield of 2.87% with a seven-year duration, so this is a fair comparison. (The seven-year duration means that even if rates rise now, your return will still be 2.87% if you hold those bonds for seven years.)

So you will come out slightly ahead without taking any more risk by paying off the mortgage if you cannot deduct the interest, or slightly behind if you can deduct it (2.565% after tax in a 24% bracket).
Wiki David Grabiner

frugaltigris
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Re: Would you pay off mortgage in my situation?

Post by frugaltigris » Tue Jun 19, 2018 2:59 pm

I am sorry for a novice question but is there a calculator to compute effective duration for paying down interest. I understand that after some years, my interest portion on the mortgage will be almost all paid off. But I would like to learn how we got the effective 8 years remaining on my mortgage.
grabiner wrote:
Mon Jun 18, 2018 11:03 pm
frugaltigris wrote:
Mon Jun 18, 2018 1:25 pm
Sorry for bringing up another mortgage pay off thread. But I will be grateful for all your advise. I have a 3.375% 30 year mortgage with 200 monthly payments and 130K principal left. I am thinking to pay it off in next couple of months. That will use all liquidity except in our emergency fund (20K) and I would save about 37K in remaining mortgage interest. I am inclined on paying it off as it gives definite return of 3.375%, but with rising interest rates I am worried of the lost opportunities in near future where I can earn more than this rate.
See Paying down loans versus investing on the wiki.

As you indicated, you should compare the 3.375% to low-risk returns, but you should also match duration. You have 200 monthly payments left, which means that the effective duration for paying down your mortgage (weighted average of the time until all future payments) is about eight years. If you invested the money in Admiral shares of Vanguard Long-Term Tax-Exempt, you would get a yield of 2.87% with a seven-year duration, so this is a fair comparison. (The seven-year duration means that even if rates rise now, your return will still be 2.87% if you hold those bonds for seven years.)

So you will come out slightly ahead without taking any more risk by paying off the mortgage if you cannot deduct the interest, or slightly behind if you can deduct it (2.565% after tax in a 24% bracket).

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Re: Would you pay off mortgage in my situation?

Post by grabiner » Tue Jun 19, 2018 6:53 pm

grabiner wrote:
Mon Jun 18, 2018 11:03 pm
You have 200 monthly payments left, which means that the effective duration for paying down your mortgage (weighted average of the time until all future payments) is about eight years.
frugaltigris wrote:
Tue Jun 19, 2018 2:59 pm
I am sorry for a novice question but is there a calculator to compute effective duration for paying down interest. I understand that after some years, my interest portion on the mortgage will be almost all paid off. But I would like to learn how we got the effective 8 years remaining on my mortgage.
A single payment has a duration equal to the time of the payment. Thus, if you have a bond which pays you all its money in ten years, or will owe a certain amount of money in ten years, this has a ten-year duration.

To find the duration of a set of payments, take a weighted average, weighting each payment by its present value. For example, if you have a four-year bond which is currently worth $5000, and a ten-year bond which is currently worth $10,000, the combination of these two bonds has an eight-year duration.

For your mortgage, you have 200 payments in 1-200 months. If all of these payments were of the same present value, the duration would be 100 months, because that is the average time to make your payments. However, the earlier payments have a slightly higher present value, because the later payments have more time for interest to grow; $1000 paid 15 years from now has a present value of $608 (at 3.375% interest), while $1000 paid 1 year from now has a present value of $967.

Here is the actual formula, which you could plug into a spreadsheet. (There are some algebraic shortcuts, but if you want to understand what is going on, it is probably better to see every monthly term in the computation.)

R=monthly rate (so (1+R)^12-1 is the annual rate)
Present value of paying $1 in month M is 1/(1+R)^M
Summing all present values gives PV=present value of the entire loan
Value-weighted duration of an individual payment is M/(1+R)^M
Summing all these gives DV=value-weighted duration
DV/PV = effective duration of loan in months

As a rule of thumb, a loan of 10 years or less has a duration close to half the term, a loan of about 15 years has a duration of a year less than half the term, while a 30-year loan has a duration of about 12 years at current interest rates.

Thus, for deciding whether to pay off my own mortgage, which has 126 months left, I use a 5-year duration for comparison. (And I wouldn't pay it off even if I had the cash to do it with no tax cost, because I can deduct all the interest, the mortgage rate is 2.00% after federal tax, and 5-year municipal bonds yield more than that.)
Wiki David Grabiner

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Re: Would you pay off mortgage in my situation?

Post by tampaite » Tue Jun 19, 2018 9:34 pm

Pay it off and be done with it and then focus your time & energy on other things.

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Re: Would you pay off mortgage in my situation?

Post by frugaltigris » Tue Jun 19, 2018 9:49 pm

Thank you so much for sharing this wisdom. Really very grateful.

grabiner wrote:
Tue Jun 19, 2018 6:53 pm
grabiner wrote:
Mon Jun 18, 2018 11:03 pm
You have 200 monthly payments left, which means that the effective duration for paying down your mortgage (weighted average of the time until all future payments) is about eight years.
frugaltigris wrote:
Tue Jun 19, 2018 2:59 pm
I am sorry for a novice question but is there a calculator to compute effective duration for paying down interest. I understand that after some years, my interest portion on the mortgage will be almost all paid off. But I would like to learn how we got the effective 8 years remaining on my mortgage.
A single payment has a duration equal to the time of the payment. Thus, if you have a bond which pays you all its money in ten years, or will owe a certain amount of money in ten years, this has a ten-year duration.

To find the duration of a set of payments, take a weighted average, weighting each payment by its present value. For example, if you have a four-year bond which is currently worth $5000, and a ten-year bond which is currently worth $10,000, the combination of these two bonds has an eight-year duration.

For your mortgage, you have 200 payments in 1-200 months. If all of these payments were of the same present value, the duration would be 100 months, because that is the average time to make your payments. However, the earlier payments have a slightly higher present value, because the later payments have more time for interest to grow; $1000 paid 15 years from now has a present value of $608 (at 3.375% interest), while $1000 paid 1 year from now has a present value of $967.

Here is the actual formula, which you could plug into a spreadsheet. (There are some algebraic shortcuts, but if you want to understand what is going on, it is probably better to see every monthly term in the computation.)

R=monthly rate (so (1+R)^12-1 is the annual rate)
Present value of paying $1 in month M is 1/(1+R)^M
Summing all present values gives PV=present value of the entire loan
Value-weighted duration of an individual payment is M/(1+R)^M
Summing all these gives DV=value-weighted duration
DV/PV = effective duration of loan in months

As a rule of thumb, a loan of 10 years or less has a duration close to half the term, a loan of about 15 years has a duration of a year less than half the term, while a 30-year loan has a duration of about 12 years at current interest rates.

Thus, for deciding whether to pay off my own mortgage, which has 126 months left, I use a 5-year duration for comparison. (And I wouldn't pay it off even if I had the cash to do it with no tax cost, because I can deduct all the interest, the mortgage rate is 2.00% after federal tax, and 5-year municipal bonds yield more than that.)

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Re: Would you pay off mortgage in my situation?

Post by MP173 » Wed Jun 20, 2018 1:48 pm

I have paid off mortgages twice and in both cases, took an aggressive approach with making larger monthly payments....after my retirement and non qualified investments were addressed. The second mortgage was somewhat different as after a few years I did make a lump sum final payment. The reason was the sale of a property and without having a direction for that cash, felt the mortgage payoff was a prudent decision. It did not involve the entire cash settlement.

It is a great feeling to have the monthly payment dissolved.

Ed

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