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Old 07-24-2019, 12:00 PM
 
Location: equator
3,532 posts, read 1,563,392 times
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I think no mortgage/debt has been key for our retirement. My first house was paid off at age 32 and have not had a mortgage since. We built our houses ourselves after that.

When I met the current DH, he was living in a mobile home on drop-dead gorgeous 5 acres (paid for) with stunning views. It was absolutely mortifying to me to live in a mobile home (all those redneck jokes!) but we were surrounded by nice homes.

Swallowed my pride, fixed it up and enjoyed having no payments for the next 10 years. It definitely helped our retirement going into it owing nothing.
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Old 07-24-2019, 12:39 PM
 
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Well, I haven't retired yet, but I have been fortunate to have a pretty good income through most of my career; and our last mortgage was paid off at age 38 (20 years ago). Haven't had a car payment since 1991. I cannot imagine how we could have saved what we've saved, had we been making mortgage and car payments all those years.


That said, we have not bought a house in a situation (like crazy expensive coastal cities) where paying cash for a house or paying off our mortgage would have zeroed out our working cash.


We've made other bad financial decisions through the years, but I think paying off the mortgage and not having the ongoing fixed overhead of debt service has been a good thing for us.
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Old Today, 02:03 AM
 
1,779 posts, read 2,451,005 times
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I paid off my mortgage when I was 47 and then remortgaged to do an amazing $290,000 remodel on an old, historic adobe home. It was well worth it.
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Old Today, 02:23 AM
 
72,085 posts, read 72,068,214 times
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Quote:
Originally Posted by SoCal_Native View Post
Very few financial advisors (or anyone who passed 8th grade math) would recommend a 29 year old paying off a sub 4% mortgage. There are almost no scenarios which would present a higher net future value doing that versus sticking that money used to pay down the mortgage into something like an S&P500 index fund (after fully contributing to Roth IRAs and matched amounts at work).
it is never timing the equity markets but time in the equity markets that make investing in diversified funds almost a sure thing over decades of time .

the longer one waits to commit more money the more you end up putting pressure on a shorter time frame for markets to act favorably in .

that is the mistake many make who pump more and more money then required in to their mortgage payments run in to ... by the time they pay off that accelerated mortgage which is not going to change over the decades and commit that extra money to other investments , they lost valuable compounding and growth time in other investments . but more important they put more pressure on the shorter time frame having to be a good one .

so i agree , no way should a typical 29 year old be concentrating on paying off a historically low interest rate mortgage early .
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Old Today, 04:20 AM
 
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I didn’t buy my first house until I was 54 but I started putting money into my 401(k) in my late 20s. I would much rather have a hefty retirement fund than a paid for house, especially since I have no idea if I will be staying in this house or not (probably not).
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Old Today, 04:27 AM
 
72,085 posts, read 72,068,214 times
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Quote:
Originally Posted by N.Cal View Post
I didnít buy my first house until I was 54 but I started putting money into my 401(k) in my late 20s. I would much rather have a hefty retirement fund than a paid for house, especially since I have no idea if I will be staying in this house or not (probably not).
that is one aspect of it.. money if you have it buys choices . the more you can grow it and save the more choices
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Old Today, 04:31 AM
 
Location: Carolina Shores NC
6,745 posts, read 8,099,484 times
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I learned about 15 year loans and amortization years ago. I haven't had a mortgage since my late 40's.
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Old Today, 08:18 AM
 
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I never regretted paying mine off early but I was able to do it while maxing 401k and still putting some into taxable. I don't have a great income but I bought a modest house and don't live in an expensive city.
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Old Today, 08:59 AM
Status: "Loving our retirement" (set 11 hours ago)
 
Location: Asheville NC
1,619 posts, read 1,322,294 times
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I posted in this thread earlier. We did pay off our previous home in less than 15 years, leaving more money for us to invest and maintain it in tip top shape. We lived in it for almost 32 years in a higher than average cost of living area. Buying was cheaper than renting. It was in a great area, sold quickly for asking price and it had appreciated more than we ever dreamed possible. So I personally feel it is a good idea- especially if you are going to stay in one place for an extended period.

That said we do have a very low rate mortgage for another 9 plus years on our retirement home. We are thankful that we purchased it when we did because real estate has gone through the roof in Asheville and surrounds. We can comfortably cover the payment and continue to enjoy our retirement. Our home has appreciated more than 200k since 2014, according to realtor.com. We constantly have realtors inquiries for listings.
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Old Today, 09:06 AM
 
13,354 posts, read 25,625,436 times
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I got a 15-year mortgage on my retirement home at age 65. I did put some of the profit from my former house (not paid for but appreciated) so that my mortgage payments are well within my pension and Soc. Sec. income. I also wanted enough equity that, if I need to leave this house for a senior apartment in the city (medical, whatever) I'd be able to take profit out even if not paid off.

I did buy a rental house in the area here with some of the profit from the other house. I am gaining more in rent than I would have with the same amount in savings. If/when the tenants/friends buy the house from me (1-2 years?) I will have another chunk of change to consider. Will probably put it in a CD or something mild. I live pretty quietly, at least I think I do.
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