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If one has $$ saved, and pretty much sitting on it, is it best to pay off the house mortgage, and have the deed ? I'm not talking too much, but another topic on cutting $ 500 / month has me convinced to invest fully, since CDs are not bringing much and the US $ is shifting...
if i had one of those 30 year fixed mortgages i'd probably stick with it. it might take a year or 2 but eventually the fed has to deal with inflation and interest rates will go through the roof. essentially you'll be paying less than the interest you're earning i'm not too sure how the mortgages work but maybe someone can add on.
If you have a low 30 year fixed rate I would never ever pay off the mortgage. Emotions aside there is no good reason to pay it off today. Keep your money liquid and let the bank take the risk on the property.
On the other hand, there's a real sense of satisfaction in not having a mortgage. If you have other, higher interest debts you might want to pay them off first, but if you don't, it'd feel great not not have a mortgage payment, wouldn't it?
If one has $$ saved, and pretty much sitting on it, is it best to pay off the house mortgage, and have the deed ? I'm not talking too much, but another topic on cutting $ 500 / month has me convinced to invest fully, since CDs are not bringing much and the US $ is shifting...
Depends. If you look at the stock market historically, there has NEVER been a time period where more than 7 years have passed with a net loss. I would say the smarter thing is to invest (wisely, mind you) in stocks. Invest in established businesses that are not likely to go anywhere (Everyone needs toothpaste, and Colgate is a good brand, for example).
Over the long term, that's going to give you more bang for your buck, so to speak. The real variable here is the value of land and houses in your area. But regardless of that, even if you owe, the amount you owe won't increase, so even then, stocks are a better option.
I'd take the sure bet and pay it off. If you have your money in a safe investment, you're probably paying at least twice as much in interest as you're making.
On the other hand, there's a real sense of satisfaction in not having a mortgage. If you have other, higher interest debts you might want to pay them off first, but if you don't, it'd feel great not not have a mortgage payment, wouldn't it?
I'd be holding the deed too. No debts except the utilities, insurance, and taxes. Umm, a daughter in college too.
Financial wizards will tell you not to pay off your mortgage, invest your money, and enjoy the tax write off. I believe this probably is the best financial decision because it's been explained to me a few times, but paying off a mortgage sure feels good. If you're a person who likes to live debt free and don't like to owe anyone anything, it might make sense to pay it off and have a sense of relief.
Finances aren't always simply business decisions sometimes personal feelings and biases also play a part in our decisions. Only you can answer this question - what will make you the happiest?
If one has $$ saved, and pretty much sitting on it, is it best to pay off the house mortgage, and have the deed ? I'm not talking too much, but another topic on cutting $ 500 / month has me convinced to invest fully, since CDs are not bringing much and the US $ is shifting...
You could do what I did...I paid mine off early but I still make my payment to myself every month, goes into a saving account....but I only had a year to go when I paid it off...
We did the same thing. We paid off our mortgage last year and send the amount to a tax free mm fund every month.
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