Yes though it could be paid off tomorrow. Why though at under 3%. Soon it will be free money.

Mark Zuckerberg has a mortgage.

Paying $2MM cash for a home in a 2%-3% IR environment is insane. Still true at current rates, though slightly less so.

That said our house is 1.8 now (1.2 when we bought) and we paid 20%, mortgage was around $1MM. No way we just had enough cash lying around, but wouldn’t have paid any more even if we did.

Anonymous wrote:I've fee friends who prefer owning their residential home so they either bought on cash or paid it off when some stocks mature or inheritance delivered. They have good financial sense but value their peace of mind.

Having more than enough to cover the mortgage invested elsewhere, where it is also still growing for you is enough peace of mind. What risk are they trying to avoid? Not being able to make a payment when in fact they could pay the whole thing off in one sweep of an investment account if they had to?

We bought our 1.7 million dollar house in 2017 with cash. No mortgage. It is now worth $2.6 million. We have made more in the last 5 years from this investment than anything else we would have invested the cash in. We have additional funds invested so this keeps things diversified.

Anonymous wrote:Even if you cant pay off your mortgage, its prudent to pay more than your mortgage payment, it acts like forced saving, you pay off early, save on PMI and mortgage interest. It sure beats spending lots on furniture, decoration, designer goods and fancy cars.

wrong. invest the money.

If you can, take mortgage for investment properties but for your family living, having even a small paid off home cuts down on stress and fear of unknown.

We don’t. ($2m)

To be fair, most of us don't have that kind of cash but many of us who argue that its not a good use of money, end up using that money on lifestyle wants, instead of wisely investing it.

Anonymous wrote:

Anonymous wrote:I've fee friends who prefer owning their residential home so they either bought on cash or paid it off when some stocks mature or inheritance delivered. They have good financial sense but value their peace of mind.

Ok. And how many of those friends bought a $1.8+ million house in cash?

On top of my head, i can think of three. All are dual income families with generational wealth.

In most cases it makes more financial sense to have one even if you technically can pay cash. Some people do like to pay in full but I would say this is more of an emotional decision than a calculated one. It’s usually the less financially advantageous option but it can bring home owners peace of mind.

$2.5m custom home. No mortgage. Built with cash.

Even if you cant pay off your mortgage, its prudent to pay more than your mortgage payment, it acts like forced saving, you pay off early, save on PMI and mortgage interest. It sure beats spending lots on furniture, decoration, designer goods and fancy cars.

Anonymous wrote:I've fee friends who prefer owning their residential home so they either bought on cash or paid it off when some stocks mature or inheritance delivered. They have good financial sense but value their peace of mind.

Ok. And how many of those friends bought a $1.8+ million house in cash?

We bought a $1.8M house about a decade ago. It's now worth about $2.4-2.5M. Put down $1.1M and got a $700K mortgage. Paid it off when our financial advisor said it made sense to do so.

I've fee friends who prefer owning their residential home so they either bought on cash or paid it off when some stocks mature or inheritance delivered. They have good financial sense but value their peace of mind.