Anonymous wrote:Stop thinking of your house as a money fund. It's where you live. Just put the extra money towards other investments.

This. You don't have a problem, OP. Don't borrow trouble.

Anonymous wrote:Don't take out a loan, but do invest the house payment going forward.
For kicks, calculate how much you would have if you had taken out 30 year loan and invested the extra money instead.

+1

Bought my Mom's house for $785k nearly 5 years ago. Took a 30 yr mortgage of $320K out for 3.25% no points. Wise decision for me, very manageable payment plus my stock investments in the past 4 years have easily beaten 3.25% per year. And with inflation I'm paying back the loan with less valuable dollars each month, year. In the future, if circumstances change, I could pay off the balance with some stock liquidation. Everyone has different situations and priorities.

After my husband died in 2008 I moved with my kids to be closer to family and put a chunk of life insurance proceeds down to buy a house. 30 year mortgage. Due to the market crash, my lender offered a lower rate mortgage for 15 years which I got in 2011. Knowing my income would change once my youngest aged out of SS Survivors' Benefits it seemed like a good deal. My house, currently valued around $850K will be paid off next year and I'm thrilled. Will be reallocated most of my current mortgage payment to prop up my lagging retirement funds.

Anonymous wrote:

Anonymous wrote:In 2 years we will have our house paid off. Its current market value is 1 million. We made a mistake of borrowing only for 15 years at a very low interest rate. Is it a good idea to use it to take out loan and buy investment properties? Otherwise it's sitting there doing nothing for us.

We are mid 40s and had kids early. They are now odd to college/late high school. Being 45, we realized we are wayyy too heavy in 401k/Megs Roth/HSA and are dumping all extra disposable income into taxable brokerage. It’s the ONLY way we can retire in our 50s.

Same here. Around 45 we started doing way more taxable contributions and reduced 401s/Roths. When our house is paid off in 18 months we will increase that.

Just invest the money you were paying for your mortgage. Boring but practical.

Is this a troll? You saved a ton of interest paying in 15 years - that was not a mistake. Now you can invest that mortgage payment 15 years sooner than the other option would have provided.

Congrats OP! We have a paid off home and it offers great flexibility, especially now that our previously secure careers are suddenly much less secure sunce Jan 20. Unless the house value makes up a huge % of your net worth, this is a very good thing!

Anonymous wrote:

Anonymous wrote:In 2 years we will have our house paid off. Its current market value is 1 million. We made a mistake of borrowing only for 15 years at a very low interest rate. Is it a good idea to use it to take out loan and buy investment properties? Otherwise it's sitting there doing nothing for us.

Don't risk your only house for investments. You might wind up with nothing when the housing market corrects itself.

+1 Good advice.

It's amazing how many people have lost their homes because they feel that they are too smart to pay of their homes.