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Paying off your house as soon as possible is a big deal. There are better investments, but there's nothing like knowing you don't ever have to make another mort

Paying off your house as soon as possible is a big deal. There are better investments, but there's nothing like knowing you don't ever have to make another mortgage payment. Unfortunately, you never really pay it off since you have taxes and insurance to pay, but it helps a lot.

bdangubic 2y ago
I personally think, IF you are financially literate (I don't mean this in any derogative way, just more like you understand compound interest, the value of saving/investing...) it is a very poor financial decision to pay off the house, especially if you are holding 3.x% loan. There is nowhere you can get money with that interest and if instead of trying to pay off your house early you took that $ and invested it, you'd definitely end up on top. House also ties you to a specific location which makes your life harder if hard times actually arrive
- ggm 2y ago
  IFF you have a US style fixed interest mortgage. Fo almost any other economy, the rate variability means paying down your house may the best deal you have with some certainty of outcome. Your home isn't really an asset you want to leverage unless you already accept risks into your life, because unlike other bricks and mortar assets you live there and have non financial interest in it.
- WheelsAtLarge 2y ago
  I agree that finding an investment that generates a higher percentage profit is ideal, provided you have the discipline to maintain that investment over the long term. However, the reality is that most people lack this discipline. How many individuals actually keep their money in the most profitable investments over time? Particularly when most investments, aside from bonds, have variable returns. Often, people withdraw their money from investments when they start to decline in value, or they divert funds into impulsive investments that ultimately result in significant losses. If you speak with any doctor and ask what patients typically do when advised on how to improve their lifestyle, you'll find that many attempt to change their habits. Yet, ultimately, they often revert to the unhealthy behaviors that led to their issues in the first place. Behavioral bias, is challenging to overcome, even when it compromises their well-being. The same happens in financial decisions. While it is possible to find better investments over the long term, paying off your mortgage as quickly as possible I believe is the better investment for most people. It's not the best but it's the easier one that most people can achieve.

bdangubic 2y ago

I personally think, IF you are financially literate (I don't mean this in any derogative way, just more like you understand compound interest, the value of saving/investing...) it is a very poor financial decision to pay off the house, especially if you are holding 3.x% loan. There is nowhere you can get money with that interest and if instead of trying to pay off your house early you took that $ and invested it, you'd definitely end up on top. House also ties you to a specific location which makes your life harder if hard times actually arrive

ggm 2y ago
IFF you have a US style fixed interest mortgage. Fo almost any other economy, the rate variability means paying down your house may the best deal you have with some certainty of outcome. Your home isn't really an asset you want to leverage unless you already accept risks into your life, because unlike other bricks and mortar assets you live there and have non financial interest in it.
WheelsAtLarge 2y ago
I agree that finding an investment that generates a higher percentage profit is ideal, provided you have the discipline to maintain that investment over the long term. However, the reality is that most people lack this discipline. How many individuals actually keep their money in the most profitable investments over time? Particularly when most investments, aside from bonds, have variable returns. Often, people withdraw their money from investments when they start to decline in value, or they divert funds into impulsive investments that ultimately result in significant losses. If you speak with any doctor and ask what patients typically do when advised on how to improve their lifestyle, you'll find that many attempt to change their habits. Yet, ultimately, they often revert to the unhealthy behaviors that led to their issues in the first place. Behavioral bias, is challenging to overcome, even when it compromises their well-being. The same happens in financial decisions. While it is possible to find better investments over the long term, paying off your mortgage as quickly as possible I believe is the better investment for most people. It's not the best but it's the easier one that most people can achieve.