Log In

Your email is not your username

Register

If you were a member of the old Bodybuilding.com forums and would like to reuse your previous username, you can request it below. We use your email only for registration and do not store it. For more information, please see our Privacy Policy.

Confirm your email

A registration code was sent to your email. Enter it here.

Welcome

You have successfully setup your account.

Sign in

Quick Navigation Bottom Misc
Forum » On the topic of paying off your mortgage early
  1. Results 91 to 95 of 95
  2. Page 4 of 4
  3. First
  5. 2
  6. 3
  7. 4

Thread: On the topic of paying off your mortgage early

post 1701510721 05-25-2024, 08:30 PM
-
#91
  1. r32gojirra
  2. Registered NEET
  1. r32gojirra
  2. Registered NEET
  3. Join Date: Feb 2013
  4. Location: East Coast, Australia
  5. Posts: 39,461
  6. Subscribers: 6
  7. Rep Power: 590352
Originally Posted By SaviorSelfJT⏩
Don’t forget you gotta pay taxes on interest. The 5 percent interest is really more like 4
And then factor in inflation and you’re actually losing money fairly rapidly
post 1701520261 05-26-2024, 02:41 AM
-
#92
  1. NextPound
  2. Registered User
  1. NextPound
  2. Registered User
  3. Join Date: Jan 2019
  4. Posts: 55
  5. Rep Power: 0
Originally Posted By LateShow⏩
$350k mortgage with 7.25% interest in Texas
No PMI, but $2k per year homeowners insurance
In your case I would payoff. You are getting a concrete 7.25% rate of return. You might come out marginally ahead if you invest the difference, but its not enough to get me excited. If you have a sub 5% mortgage it starts to skew in the direction of investing the difference.
post 1701521031 05-26-2024, 03:49 AM
-
#93
  1. Narrator02
  2. Registered User
  1. Narrator02
  2. Registered User
  3. Join Date: Sep 2020
  4. Age: 56
  5. Posts: 2,315
  6. Rep Power: 34757
But if you pay it off early, doesn't your net worth increase by the value of your home? The other person only has the equity towards their net worth vs the pay off early who has the entire home value.
Also, with this current income tax structure, interest on home loans doesn't carry the same benefit as a deduction unless it helps you go past the standard deduction. My interest paid didn't even come close to passing the standard deduction
post 1701521071 05-26-2024, 03:52 AM
-
#94
  1. SpeakethTruth
  2. Registered User
  1. SpeakethTruth
  2. Registered User
  3. Join Date: May 2020
  4. Posts: 4,013
  5. Rep Power: 67347
Originally Posted By Formula0ne⏩
It's easy math. If your interest rate on your loan is 4%, but if you invest and earn 8%, you're better off using your extra money to invest than you are to pay off your loan faster.
"Invest the difference".

In all seriousness theoretically it works. But cash flows and market performance can come together in unfavourable ways forcing you to realise a loss.

The ideal minimal risk way to do it is to invest in the share market from a young age, then use the funds to buy a house with a small loan and quickly pay it off, then pile into the share market until retirement.
post 1701545311 05-26-2024, 04:22 PM
-
#95
  1. LateShow
  2. smashing and dashing
  1. LateShow
  2. smashing and dashing
  3. Join Date: Dec 2013
  4. Location: Minnesota, United States
  5. Posts: 5,433
  6. Rep Power: 56450
How do you factor in real estate and its increasing value over time? If you paid off your house in 2019, it nearly doubled in value by 2024. Can’t imagine those kind of returns in the stock market
Quick Navigation Top Misc
Bookmarks
Digg.com
Digg
del.icio.us
del.icio.us
Stumbleupon.com
StumbleUpon
Google.com
Google
Facebook.com
Facebook
Posting Permissions
  1. You may not post new threads
  2. You may not post replies
  3. You may not post attachments
  4. You may not edit your posts