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

Forum Index » Money and Finances

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

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]It doesn’t really matter either way in the grand scheme of things.  If your mortgage rate is 2.5% and your after tax yield on savings is 3%  you are only coming out ahead $750 a year by putting the money in a savings account. I would just pay it off to be done with it. It’s not worth the hassle for the measly amount of savings. [/quote]

Again, put it in a HYSA, set it on autopay, and forget about it.  At the end of each year, tak out the $750 and spend it on something you enjoy - one fabulous dinner, two very good dinners, whatever floats your boat.  You are in exactly the same financial position, you've done something you enjoy, and there is no hassle at all.  [/quote]

And if your mortgage gets "sold" several times in the year, it's not just "put it on autopay".  It's reset up autopay multiple times, and many times having to make the first payment yourself, as autopay takes a week+ for them to establish.  So it can be a bit of work.  My time is worth more than that---I don't need to spend 10-15 hours each year making sure my mortgage gets paid to earn $750, of which I will owe 40%+ in taxes (Fed+ State is 47%).  So 10+ hours of managing my mortgage for $400.  No thanks, I will pay it off, and re-invest my mortgage payment as I see fit (that can be automatic) and not worry about paperwork/mortgage management.  And god forbid if the mortgage company makes you jump thru hoops to pay your own Property taxes and insurance each time (yes that happens).

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics