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You have to balance the returns of the market vs the cost of the mortgage. In many cases it makes more sense not to pay off the mortgage and just put excess c
by koheripbal 5y ago
You have to balance the returns of the market vs the cost of the mortgage. In many cases it makes more sense not to pay off the mortgage and just put excess cash into the market.
I could pay off my mortgage at any time, but I've earned more by putting that cash in equities.
I treat my 30 yr mortgage like a low interest loan. I basically take the risk that the mortgage lender doesn't want.
- sys_64738 5y agoThe mental relief of paying off a mortgage is much greater than any mortgage repayment schedule. The day people pay off their mortgage and own it outright is up there with birth of kids.
- xupybd 5y agoYou do, but you also have to pick a risk profile you're comfortable with. If I pay off my mortgage I can afford to take on more risk in the market. I can afford to attempt entrepreneurship. It took me a long time to get to the point where I truly believed it was worth attacking my mortgage. I prefer to have as little debt as possible for my own peace. It's possible for me to get totally debt free in a year or two. Then I can focus on building a portfolio for retirement. I'm also choosing to remain in my first house and not spend lots on my standard of living.