Do people in multi-million-dollar homes typically pay off their mortgage ever?

[Anonymous]

We've thought over the years of building, but I have trouble being comfortable realizing I would never probably own it outright. Didn't know if I just have an old school mindset or if people just have a lot more money.

[Anonymous]

Typically, no. People sell and downsize after kids leave. People differ on this, but many believe your retirement home should be paid for.

[Anonymous]

We own 2 homes, are in early 50s.
Both are paid off, haven't had a mortgage in over 14 years.

Paid $3.4 for one and $2.1 for the other

[Anonymous]

Parents wrote a 6 million check for their retirement house 20 years ago.

[Anonymous]

We just buy in cash.

[Anonymous]

We bought our house in cash. Along with all our cars. And we don't have any debt.

[Anonymous]

We paid ours off a few years early. It wasn’t a multimillion dollar house when we bought it but now it is. Paid off our student loans, cars and credit cards. No debt and nearing retirement. It feels good.

[Anonymous]

Anonymous wrote:Typically, no. People sell and downsize after kids leave. People differ on this, but many believe your retirement home should be paid for.

Exactly. The others posting here are the 30-40% that do pay it off, but most don't.

That's yet another reason that the "lEvERaGe mAkeS u RiCh" idiots are wrong. Leverage, more often than not, just adds to financial insecurity.

[Anonymous]

We bought both our houses with cash. (Not our starter home because we couldn’t afford that then) Bought our current and beach home for cash. Later, took a mortgage out on one of the houses because rates were so low and put the money to work and also claim the deduction. But we could easily pay the mortgage off.

[Anonymous]

You eventually reach a point where you don’t want to have any debt even if it’s not the best economic decision.

[Anonymous]

The problem with these “cash” posts is that they give no context. Did they pay off/buy their house after a large one-time windfall (inheritance, stock bonus, or sale of a business)? Are all these homes multi-million dollar houses like OP asked about? Are the cash purchases the last of a string of 5 other purchases with increasing equity over time?

Whatever the case, most posters agree that owning your home free of debt is a goal that should be realized by retirement, even if that means downsizing or relocating.

[Anonymous]

We bought a $3m+ home last year. Given the interest rate, we plan on paying down the mortgage before we retire.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Typically, no. People sell and downsize after kids leave. People differ on this, but many believe your retirement home should be paid for.

Exactly. The others posting here are the 30-40% that do pay it off, but most don't.

That's yet another reason that the "lEvERaGe mAkeS u RiCh" idiots are wrong. Leverage, more often than not, just adds to financial insecurity.

No it doesn’t add to financial insecurity. Tying a ton of capital up in an illiquid asset actually does this. What creates financial insecurity with mortgages is buying a house you can’t afford just because you can “afford” the monthly payment. Can you afford retirement savings? College funds?

Mortgages are a fantastic tool to build wealth if you’re responsible and smart. If you’re irresponsible and dumb, it is better to not get yourself into quicksand.

[Anonymous]

Live frugally and debt free.

[Anonymous]

I have no intention of ever paying off our house. It doesn't make financial sense.

We pay our monthly mortgage at an incredibly low interest rate and invest aggressively. In six years or so when our kids are out of the house, we'll sell and walk away after paying off the mortgage with a nice amount. We'll either use that to purchase a smaller retirement home, or invest it and never buy again.