Reply to Is it completely stupid to pay off our mortgage?

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[quote=Anonymous][quote=Anonymous]We are 35. Two kids. No debt other than mortgage.
House worth 475. mortgage on it 285K. we are doing a 15 year, at 3 percent. 
We are maxing out our 401Ks, non-deductible IRAs yearly. we have about 300K in those accounts (evenly split by spouse). 
Have maxed out 529 contribution for kids yearly since they were born.  
we have good life term insurance coverage, both through work and privately held.

we have about 250K sitting in savings because we are really scared of investing (other that the mutual funds/etfs/index funds we are invested in for our retirement accounts).

Thinking about making a massive payment to our mortgage, and just paying it down fast.

is this dumb, and if so, please explain why?

FWIW, we are the kids of hard working immigrants who fear debt and want to be free.

- completely financially unsavvy person
[/quote]

Since you are risk adverse.  I thinkpaying off your mortgage is an excellent idea.  It will give you piece of mind.  Yes, theroetically you could earn more in the stock market, but that is very volitile and you have to have the stomach for it.  You may find that you are less risk adverse once your house is paid in full.  Living a no debt life and reducing your actual expesnes can allow you to have more choices in the future, as you won't be chained to it.

We have not paid of out mortgage, but are close.  We have fully finded our children' college for in state school expected expenses and max out on IRAs and 401k.  BUT, we save elsewhere in a fund we call college/retirement- baed on current calculations 401`k plus IRA may not be en9ugh for fully funded retirement.  If our children end up going out of state or to a private school, those funds will be there- however, if they don't we have them for our retirement.  We also have 12 months of expenses saved for emergencies- this is what we use for getting a new water heater, furnace, roof..... and then we replenish it over the next year or so.

Good luck.[/quote]

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