Reply to If you were to inherit $2 million, would you pay off the remaining $150k of your very low interest mortgage?

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Reply to "If you were to inherit $2 million, would you pay off the remaining $150k of your very low interest mortgage?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]No, I would not pay off my low interest mortgage.

Our “very low” mortgage is at 2.25%. It doesn’t make any sense to pay that off when I can get 3% in a regular savings account.[/quote]
+1   We have the money in cash to pay off our mortgage right now, but why?  The rate is 2.75%, and our money is sitting in a MMA earning closer to 4%.[/quote]

There are these things called taxes.  Assuming you're at least in the 32% bracket (24% federal and 8% MD) and are among the 90%+ of Americans who don't itemize deductions, you'd actually be earning a higher return by paying off your mortgage than keeping it in a MM at 4%.

Also, you've got it in cash for now, but paying off your mortgage is also a protection against making a bad move in the stock market (e.g., you pile into NVDA because of the hype and it drops 70% during the next correction).  Why play games with the roof over your head for *at most* a few basis points in return??[b][/quote]

I agree with you but reality is majority of people in this area Don’t have a 2.75 mortgage rate.[/quote]

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