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I'm not the parent commenter, but here's my reasons for wanting to pay my mortgage off early: 1. Not having to be reminded to pay the payment every month, or m

I'm not the parent commenter, but here's my reasons for wanting to pay my mortgage off early: 1. Not having to be reminded to pay the payment every month, or making sure the automatic payments keep going. No more mortgage payments safely frees income for other purposes. 2. The satisfaction of fully owning my house and land. 3. Most millionaires pay off their houses early.[0] Who doesn't want to be one of those? > Clearly you are worried about something. Didn't you notice the millions of people who lost their jobs last year? Haven't you noticed that the economy isn't in the best of shape lately? > I don't understand why having 100K house + 120K mortgage + 120K assets is worse than having a 100K house. The reason is: if you had a fully paid off house, would you borrow 120K against it? [0] https://www.businessinsider.com/everyday-millionaires-pay-off-mortgage-strategy-build-wealth-2019-2 https://www.businessinsider.com/everyday-millionaires-pay-of...

bhelkey 5y ago
> 1...2 These make a lot of sense to me. I can certainly see many non financial reasons to do it. Decisions often have a variety of components (financial aspect, social aspect, how stressed it makes you, ...). These are great reasons to make the decision. I still have trouble understanding the financial aspect though. > Didn't you notice the millions of people who lost their jobs last year? Haven't you noticed that the economy isn't in the best of shape lately? I'm not sure what that has to do with this. 120K in assets provides a whole lot of security in case one loses their job. It is certainly better from a financial standpoint to put extra money into your mortgage than it is to spend it. But I still don't understand why you are viewing a low interest rate mortgage as the best investment. > The reason is: if you had a fully paid off house, would you borrow 120K against it? My impression is that one could have a mortgage rate as low as 2.7%. I bonds currently return 7.12%. Taking money out at 2.7% and putting it in very safe investments that return >2.7% seems like a great deal to me. Maybe this boils to me not getting burned by the market yet.

bhelkey 5y ago

> 1...2 These make a lot of sense to me. I can certainly see many non financial reasons to do it. Decisions often have a variety of components (financial aspect, social aspect, how stressed it makes you, ...). These are great reasons to make the decision. I still have trouble understanding the financial aspect though. > Didn't you notice the millions of people who lost their jobs last year? Haven't you noticed that the economy isn't in the best of shape lately? I'm not sure what that has to do with this. 120K in assets provides a whole lot of security in case one loses their job. It is certainly better from a financial standpoint to put extra money into your mortgage than it is to spend it. But I still don't understand why you are viewing a low interest rate mortgage as the best investment. > The reason is: if you had a fully paid off house, would you borrow 120K against it? My impression is that one could have a mortgage rate as low as 2.7%. I bonds currently return 7.12%. Taking money out at 2.7% and putting it in very safe investments that return >2.7% seems like a great deal to me. Maybe this boils to me not getting burned by the market yet.