Reply to Mortgage Fatigue- How Long Did it Take You To Pay Off Your Mortgage.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We have been in our house 20 years, so would be 10 years away from paying off our mortgage....

... which we had gotten as a 10-year adjustable at 8%. It would have been insane to not ever refinance, just so we could have been feeling like we were "paying off" the house. We've refinanced a number of times, and are now down to a 3.625% 30yr loan. And our house is now sellable for close to triple what we paid for it (and could probably rent it out for $1,200 more than our monthly payment). But we're not going anywhere. And we love the spending money we have from a small mortgage with a low interest rate.

In days of low low interest rates, paying off a mortgage is not always the end-all be-all.
[/quote]

You could still pay extra in principal. OP here-  I've refinanced three times in 13 years with a 30 year mortgage and we are down to ~6-7 remaining years worse case because we paid down the loan (principal).  Our 4.5% rate is considered high today but we couldn't "pay" for the refinancing costs anymore because our balance is too low.  Each time we refinance, I reamortize our loan based on my estimate of when we will pay it off.  IE- if I think we can pay off a 30 year loan in 15 (no penalty for early payment), I calculate the savings and if it more than offsets the cost refinancing costs I go for it.   I use to think like you [b]until I lost 1/2 of my 401k savings in 2008[/b].   For me paying off the loan represents financial security (less money needed in the emergency checking account which earns no interest).  I agree though PP that when life is good, investing in the stock market would yield better long term returns.   [/quote]

Unless you took the money out of your 401k in 2008 you didn't "lose" it.  My 401k dipped by about 40 percent in 2008 and it's now at about 120% of what it was prior to that drop.[/quote]

True it was an unrealized loss but if we had a job loss or health issue and we would have pulled out it would have been ugly.  Made another payment below 65k today.[/quote]

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