Reply to Spouse Insistent on Paying Mortgage Off Early

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Do NOT pay off mortgage early. If he wanted a shorter mortgage, he should have requested a shorter term. We just paid off a 15 year old mortgage, which comes with far less interest than a 30 year. If you pay off a 30 mortgage early, you're still paying more interest. It negates all the benefits of having that longer term.

Invest the money in the stock market instead. Apple, Nvidia, Microsoft, Alphabet (Google), Netflix, Meta. Maybe not Tesla.

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Awful advice. First, if they pay it down faster, all amounts over the regular monthly amount come straight off principal, so it's wise to do so.

Second, investing in a handful of stocks is highly risky because it's not diversifying. Most of those stocks have really high P/E ratios too = potentially overvalued.[/quote]

PP you replied to. I stand by what I said. You don't seem to understand that "the regular monthly amount" is made up of more interest than if you'd chosen a shorter-term mortgage! So they're making you pay the interest first anyway.

Picking a shorter term mortgage and not paying it in advance has worked well for me. I'm 100% in stocks I hand-picked myself and that has led to a rapid wealth accumulation. But beyond anecdotal data, the math is sound. We can talk about a stock market bubble if you want, but personally, I think stock market investment is still the way to wealth.

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