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Having no mortgage was a large factor in me retiring at 46.
Now, I'm used to paying prop taxes only, now. It allows me to buy more toys now. And spoil the grandkids.
Probably shoulda kept that house, I know.
Bruh, you had money to buy toys and spoil the grandkids but you gave it to the bank! Are they thankful? Heck no! If you ever wanted/needed that money back they can deny you or charge you an arm and a leg. So you decreased your liquidity not increased it. That is all the mortgage people are trying to point out. You are just fooling yourself.
Bruh, you had money to buy toys and spoil the grandkids but you gave it to the bank! Are they thankful? Heck no! If you ever wanted/needed that money back they can deny you or charge you an arm and a leg. So you decreased your liquidity not increased it. That is all the mortgage people are trying to point out. You are just fooling yourself.
That wasn't your money to begin with..a mortgage is a loan that you have to pay back.
That's not YOUR money to take back. It was never YOUR money to begin with.
That wasn't your money to begin with..a mortgage is a loan that you have to pay back.
That's not YOUR money to take back. It was never YOUR money to begin with.
Nope, because MY money is out there working, so I don't have to.
This is just one of those choices where there will always be people on both sides who feel that the other side is wrong (crazy, blind, foolish, etc, choose your favorite adjective). It's a no-win argument because no answer is right for everyone (not even "usually", as in the above article which I can't read. Quoting a summary paragraph of the "why" would've been nice). There are too many variables between people's circumstances to make blanket statements. For some people, any risk is too much risk, or they just like the simplicity of paying it off.
For the $400 mountain, paying it off means everything. For the $2000 molehill, paying it off means nothing. That is exactly why this thread will never go away; the two different camps seem incapable of yielding their position on the matter because of personal preferences.
I just love breaking out the popcorn and kicking back for the fireworks!
People can do what they want. The problem is that those that pay off their mortgages are being accused of being less financially savvy.
Nope, because MY money is out there working, so I don't have to.
This is just one of those choices where there will always be people on both sides who feel that the other side is wrong (crazy, blind, foolish, etc, choose your favorite adjective). It's a no-win argument because no answer is right for everyone (not even "usually", as in the above article which I can't read. Quoting a summary paragraph of the "why" would've been nice). There are too many variables between people's circumstances to make blanket statements. For some people, any risk is too much risk, or they just like the simplicity of paying it off.
A mortgage is a loan of someone else's money to you. How can you say "nope" as if it wasn't a fact ?
Rather than giving a gut feel opinion, I ran this scenario through firecalc. 30-year fixed loan at 3%, with the borrowed amount invested in S&P 500.
It gives a success rate of 93.9%. So yes, taking the loan is very likely a winning move, but historically speaking there is some chance of failure.
If, if, if the S&P 500 continues to pay at something better than 3%, and if the banks do not get a wild-hair and decide to foreclose on your mortgage, then sure.
If I had a well that produced corn whiskey, I would, ...
I suspect that we are re-living the Roaring twenties right now, prosperity is all that we can see as far as the eye can see. Next week I expect our house will be plumbed in to the free bubble-up line and then it will be rainbow stew for everyone.
If, if, if the S&P 500 continues to pay at something better than 3%, and if the banks do not get a wild-hair and decide to foreclose on your mortgage, then sure.
There's a bit more to it than just the 3%. Like any portfolio survival analysis that uses a volatile asset, it depends which are the good years and which are the bad years (sequence of returns).
As far as a lender calling in a mortgage loan... well that's roughly #852 on my list of concerns. We have learned a thing or two since the 1930s.
That is good to hear. We've been home owners for close to 30 years. It'll be nice to not have a mortgage to think about. Ideally, we'll have our living expenses reduced as we head into retirement. Smaller paid off home, empty nest, fewer vehicles to insure, smaller utility bills, smaller food bills, close proximity to stores/doctors/restaurants so less driving and less gas used. If we can do that, we should be pretty well set to have some fun in retirement, too. And we'll be prepared to weather any downturns in the economy.
People can do what they want. The problem is that those that pay off their mortgages are being accused of being less financially savvy.
True, when I have said over and over and over again that my paid for home is only PART (and not the bulk of) my overall investment portfolio. I don't have a cash flow problem either. Far from it. It's just one of many investments. Some produce more (and are a higher risk) and some produce less (and are a lower risk).
I just met with my financial advisor yesterday and he's very pleased with my overall goals and plan and liquidity etc. etc.
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