Pay off mortgage or not

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Cruise
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Joined: Mon Nov 21, 2016 7:17 pm

Re: Pay off mortgage or not

Post by Cruise »

Outer Marker wrote: Sat Nov 21, 2020 4:48 pm
Cruise wrote: Sat Nov 21, 2020 1:37 pm It may not make sense to pay off a mortgage, but it may make you feel really good and secure. I did it, and very happy that I made this decision.
I hear you! I don't discount the psychic benefit at all. I have always been a "pay off the mortgage" guy. I did it once, and it felt great. Due to unforeseen life circumstances, I am forced to do it again. But, "this time is different." :? I say that only partially tongue in cheek. The covid crisis and fed monitary policy have led to some birazze upside down results. Who would of thought oil would be trading for negative $37 bbl in April, right? I don't think mortage rates in the low 2% range (about the cost of inflation) are going to be around very long. I'd jump on it.

A 15 year term seems a comfortable balance between paying it off and having a "big, long, mortgage to hold forever" and die owing money. I can pay off my mortgage tomorrow if I want to, but would have to sell equities and pay capital gains. I sleep well knowing that, even though I own the bank money. OP is in a similar position with enough cash to pay it off at whim.
Yes..selling equities and being taxed for it makes no sense. I'll probably be taking out a mortgage when to purchase our next home, and pay it off when we sell our current home. Never thought I would take out another mortgage, but they have their uses!
Marseille07
Posts: 283
Joined: Fri Nov 06, 2020 1:41 pm

Re: Pay off mortgage or not

Post by Marseille07 »

Outer Marker wrote: Sat Nov 21, 2020 4:48 pm
Cruise wrote: Sat Nov 21, 2020 1:37 pm It may not make sense to pay off a mortgage, but it may make you feel really good and secure. I did it, and very happy that I made this decision.
I hear you! I don't discount the psychic benefit at all. I have always been a "pay off the mortgage" guy. I did it once, and it felt great. Due to unforeseen life circumstances, I am forced to do it again. But, "this time is different." :? I say that only partially tongue in cheek. The covid crisis and fed monitary policy have led to some birazze upside down results. Who would of thought oil would be trading for negative $37 bbl in April, right? I don't think mortage rates in the low 2% range (about the cost of inflation) are going to be around very long. I'd jump on it.

A 15 year term seems a comfortable balance between paying it off and having a "big, long, mortgage to hold forever" and die owing money. I can pay off my mortgage tomorrow if I want to, but would have to sell equities and pay capital gains. I sleep well knowing that, even though I own the bank money. OP is in a similar position with enough cash to pay it off at whim.
I'm also happy I did it. I know it's "better" if you can beat the interest rate elsewhere but the reality is you don't invest 100% of what would've been in your pocket anyway, along with the fact that beating the rate isn't even a guarantee.
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abuss368
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Re: Pay off mortgage or not

Post by abuss368 »

Gooch1226 wrote: Sat Nov 14, 2020 8:41 pm Pay it off ! I recently paid mine and feel stress free! To each is own but to me it’s a piece of mind ! Just open a heloc as a just in case until you build cash up !
This speaks to me. The older I get the more I do not want debt and no longer want to owe the bank!
John C. Bogle: “Simplicity is the master key to financial success."
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