Thread: Paying off the house early
02-23-2024, 09:34 PM
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#61
- AlwaysFocus
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Originally Posted By Destor⏩
well of course if you catch a windfall of moneyIf you had the money to fully pay off a house, like $200-300k lets say, I'd sooner try to wrangle that into down payments for buying multiple properties with mortgages and renting those all out while still keeping the current mortgage
Take some risk brahs, push yourselves
Take some risk brahs, push yourselves
02-23-2024, 09:36 PM
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#62
Don’t.
When interest rates come back down later this year, refinance, try to do it over and over until you get 3% or as close as possible to that or lower. This way inflation works in your favor, you end up paying these people back with worthless toilet paper money, while your investments, even if conservative, return 12% on average.
This is money making 101
In fact you should never pay anything off, as long as you can get it with 3% interest, since investment always returns more. No financially literate person would buy a 100k car with cash even if they are rich, since you can finance it at 3%, keep your money and put it in sp500 and get back 12%
When interest rates come back down later this year, refinance, try to do it over and over until you get 3% or as close as possible to that or lower. This way inflation works in your favor, you end up paying these people back with worthless toilet paper money, while your investments, even if conservative, return 12% on average.
This is money making 101
In fact you should never pay anything off, as long as you can get it with 3% interest, since investment always returns more. No financially literate person would buy a 100k car with cash even if they are rich, since you can finance it at 3%, keep your money and put it in sp500 and get back 12%
02-23-2024, 09:37 PM
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#63
- NitrogenWidget
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Originally Posted By OliverHeldens⏩
If you have a 3% mortgage, why would you pay that off early? Cash can be used in so many other better ways.
Originally Posted By Destor⏩
3 ish % mortgage here.Being able to pay off any kind of debt early is of course a good situation to be in and comes with other benefits like peace of mind, but it's possibly not the optimal way to use the money if you're willing to take on some risk
i'm torn between investment in retirement or paying extra on home.
i'm still 15yrs away before i have to think about retirement plus advancement and pay increases so since i have a buffer in savings for bad chit that can happen i'm going for retirement investment.
my mortgage payment is less than most rentals right now.
you have to find a real chit hole to get cheaper.
i'm probably going to rely on one of my kids to take the house over because they will most likely not be able to afford their own house while I build a small house on a plot of land in the middle of nowhere with a big ass pole barn for all my chit.
02-23-2024, 09:41 PM
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#64
- FelixTheCat1919
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Originally Posted By NitrogenWidget⏩
Paying off a 3% mortgage early makes absolutely zero sense lol. Once you get close to 5%, it makes more sense to oay it early. At 3% you're clearly beating inflation at the bare minimum, even without other investments.3 ish % mortgage here.
i'm torn between investment in retirement or paying extra on home.
i'm still 15yrs away before i have to think about retirement plus advancement and pay increases so since i have a buffer in savings for bad chit that can happen i'm going for retirement investment.
my mortgage payment is less than most rentals right now.
you have to find a real chit hole to get cheaper.
i'm probably going to rely on one of my kids to take the house over because they will most likely not be able to afford their own house while I build a small house on a plot of land in the middle of nowhere with a big ass pole barn for all my chit.
i'm torn between investment in retirement or paying extra on home.
i'm still 15yrs away before i have to think about retirement plus advancement and pay increases so since i have a buffer in savings for bad chit that can happen i'm going for retirement investment.
my mortgage payment is less than most rentals right now.
you have to find a real chit hole to get cheaper.
i'm probably going to rely on one of my kids to take the house over because they will most likely not be able to afford their own house while I build a small house on a plot of land in the middle of nowhere with a big ass pole barn for all my chit.
02-23-2024, 10:22 PM
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#65
02-24-2024, 07:28 AM
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#66
- nutsy54
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Originally Posted By Evil_D⏩
What the hell is an "early repayment fee"? My mortgage definitely did not have that, and nobody should take out a mortgage that does. My initial mortgage interest total would've been $123,359 if I paid normally. Actual interest totaled up to $19,539 because I paid it off quickly.30 year loan paid off in 5?
You stuffed up.
Hope you enjoyed making your bank rich being charged all those excess early repayment fees.
You stuffed up.
Hope you enjoyed making your bank rich being charged all those excess early repayment fees.
02-24-2024, 07:32 AM
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#67
- nutsy54
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Originally Posted By elterrible987⏩
Why would I stay in debt for 20 years? Without a mortgage, I pour a huge amount into investing (and vacation savings) every month,thatis how to build wealth.over the long term it still makes more sense to keep the 2.25% mortgage open. show me any 20 year point in time that the stock market returned under 2.25%
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