Reply to If paying off your mortgage is dumb, why do so many rich people do it?

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Reply to "If paying off your mortgage is dumb, why do so many rich people do it?"

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[quote=Anonymous]OP, I'm with you. And I think peopel underestimate the intangible benefits of not owing money on your home. I feel differently about investment properties, where I think it makes sense to just look critically at how to maximize your profits. But I find the security and peace of mind of owning my home free and clear to be worth something. An investment property you can always sell if you need to liquidate or for some reason you couldn't cover the debt. But selling your house is different -- you need somewhere to live. Knowing that if I was suddenly without income, or if I needed to save a large sum very quickly, I could simplify other costs and live in my current home for very little money, is huge. Also, I genuinely love my home so I would hate to be in a situation where I feel like I have to sell it due to the mortgage. Even with a very high income, the idea of paying 10-20k a month on a mortgage just sounds dicey to me -- people who finance homes like that can get into cash flow problems very quickly, especially if they've structured their earnings to reduce ordinary income as much as possible. It might be "smart" financially, but it sounds stressful and having less stress is worth a lot of money to me.[/quote]

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