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I already have several mortgages in properties I rent out. I'm not paying any of them off before they're due.

• jjeaff 9y ago
  You sound like a lot of people pre-2009. Play the game with leverage and you do increase your chances of winning big, but you of course do so at the risk of losing everything, including your personal home. I'm sure you know that. Just also know that people much smarter than you or I are choosing to put vast amounts of money into mortgage lending rather than the market. If the stock market was such a superior investment, why would any bank choose to hold a mortgage? Fact is, you have to factor the risk into the equation when comparing mortgage vs market. Market volitility decreases market return and the extreme burden of losing your personal residence increases the mortgage rate side of the calculation. Also, of course, there is the negative affect on your credit and possible bankruptcy to factor into the risk equation (which also carries some upside in that if you don't pay of your mortgage, and lose it all while upside down on the mortgage, you have transferred some of the loss to the bank.) And of course like the other poster said, "not paying off early" is the exact same thing as taking out another mortgage the day you pay it off, if you have the means to do so. If you are really "doing the math" then you have to do all the math.
  • 0xbear 9y ago
    Those people were flipping. I'm holding.
    • jjeaff 9y ago
      Many were holding as well, but as property values plummeted, so did rents. But mortgage payments remained steady and high.