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according to a mortgage calculator if i pay off my 30 year mortgage in 5 years, i'll save $200K in interest. i know a lot of ppl think due to low interest rates we shouldn't pay off mortgage early and rather invest that money, but it seems to me this might be a more stable investment than putting the extra money into stocks that may or may not be stable. any thoughts? my interest rate right now is 3.8
it all depends on whether you think you'll make more than 3.8% annually over the next 30 years (or whatever time horizon you have left on your mortgage)...
it all depends on whether you think you'll make more than 3.8% annually over the next 30 years (or whatever time horizon you have left on your mortgage)...
see, that's the part i feel is so uncertain. who knows? isn't the stock market pretty volatile?
see, that's the part i feel is so uncertain. who knows? isn't the stock market pretty volatile?
Coming from someone that puts 80% of his disposable income in stocks and rents an apartment...there is no better feeling to me that owning your home. That alone opens up enough cash flow for most people to live comfortably and enjoy life. People will always say if you can make more than your interest rate investing elsewhere then you should. This is very true but by paying off your mortgage early you're paying yourself 3.8% interest guarenteed and you get that peace of mind. I say pay off your home and then in 5 years you can invest if you'd like with your extra cash flow.
I paid off my mortgage, thankful to god for the opportunity to do so and the peace of mind is invaluable. Most investments are volatile anyways. It's all really depending on your age, jobs security and multi other factors. For me, while being young and have the opportunity to make much more money and throw them into investments, I paid off mortgage and continue to toss "most" of what I make into an investment account.
it all depends on whether you think you'll make more than 3.8% annually over the next 30 years (or whatever time horizon you have left on your mortgage)...
It also depends on how likely you think it is that you'll need to access that money in the near term. Paying off the mortgage saves a ton of money down the road, but leaves you with less liquidity in the short term. You can withdraw money from the bank more easily and much more quickly than you can from your home.
That said, if you can pay off the mortgage that early while maintaining a reasonable amount of liquidity for emergencies, I'd say go for it.
according to a mortgage calculator if i pay off my 30 year mortgage in 5 years, i'll save $200K in interest. i know a lot of ppl think due to low interest rates we shouldn't pay off mortgage early and rather invest that money, but it seems to me this might be a more stable investment than putting the extra money into stocks that may or may not be stable. any thoughts? my interest rate right now is 3.8
DO IT!
mine was 3.25% and i still did it.
Now, i have plenty of cash (without a mortgage) to invest in the stocks if i want to.....
You will NOT regret paying it off. I promise you that!
Quote:
Originally Posted by ameridreamNoT
I paid off my mortgage, thankful to god for the opportunity to do so and the peace of mind is invaluable. Most investments are volatile anyways. It's all really depending on your age, jobs security and multi other factors. For me, while being young and have the opportunity to make much more money and throw them into investments, I paid off mortgage and continue to toss "most" of what I make into an investment account.
DO IT!
mine was 3.25% and i still did it.
Now, i have plenty of cash (without a mortgage) to invest in the stocks if i want to.....
You will NOT regret paying it off. I promise you that!
Don't forget the 20 threads you've started since you paid off your mortgage about going back into either mortgage debt or drawing on a heloc
Quote:
you lost me at '..thankful to god..."
Then it really didn't need a response from you did it?
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