Another mortgage pay off question
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Anonymous
| Different perspective to consider. We have two houses, both paid off. For us, it was an insurance policy. My DH makes substantially more than I do. In the event he were to die, our future income would change dramatically. I greatly appreciate the security of knowing that I own our homes outright, have no debt, and could sell them if I needed cash. We also have investments so we look at it as a balanced portfolio. |
Anonymous
| I know statistically investing would probably have been better. But if things go a stray and the market crashes and I am out of work. I have a place to sleep and so do my children. |
Anonymous
Counseling is available. |
Anonymous
|
This is a portfolio question, and there is no right answer.
By paying it off, you are effectively shifting some investments from stocks, which have a higher expected yield and higher risk to a low yield but low risk investment. Most analyses of the "economically rational" approach would say to keep the mortgage at that very low interest rate, unless you are extremely risk averse. But if you are extremely risk averse, you should pay if off. That said, if you have a net worth of many millions, this might be worth a few hundred dollars to disuss with a financial advisor. |
Anonymous
+1 And you are not really in debt if you have the money to pay it off, but it's just invested elsewhere. I get the wanting to pay it off. We eventually did, but only once we hit $10M+ and since then we purchase all homes with cash. But until you have a huge amount, it's better to have the flexibility |
Anonymous
| Of course you do NOT pay it off. Does your spouse have a job? |
Anonymous
You’re not in debt if your assets are greater than your liabilities. Finance 101. |
Anonymous
Were you raised during the Great Depression? |
Anonymous
|
How old are you?
If you had no income from work could you make the payments indefinitely? |