You will never get back the 8%+ annual averaged returns on that $300k if you

Jan 20, 2020
3:35:58pm

Ash All-American

throw it at money that only costs you 3.75% each year. Peace of mind is a powerful thing, however. So if you are dead set on doing something, maybe you throw half that sum at the mortgage to hedge your bet.

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Ash

Previous username: texmizzoucoug
Bio page: Ash
Joined: Feb 15, 2013
Last login: Jul 19, 2021
Total posts: 14,282 (592 FO)

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Messages

Author

Time

What’s CB collective thoughts on paying off your home early?

SlantRoute

1/20/20 3:12pm

I'd buy rental real estate but I get your mindset.

mulletino

1/20/20 3:13pm

Nothing feels so liberating as owning your home outright. I would not take

Ycrazy

1/20/20 3:15pm

315k invested in the stock market will make more than paying off your home.

Baron

1/20/20 3:15pm

Assume I have zero knowledge on the stock market...

SlantRoute

1/20/20 3:17pm

You actually might be better off. Low cost index funds all the way.

JJCoug

1/20/20 3:21pm

No it doesn't. Get an advisor with vanguard or fidelity or a simple target date retirement fund.

Baron

1/20/20 3:22pm

You could just buy an index fund and forget about it. Don't have to know anythin

Triznaynay

1/20/20 3:22pm

This. Cash flow now vs earnings.

Grit for Brains

1/20/20 3:18pm

Or not. Timing is everything. Buy low sell high .. absolutely

Big Daddy D

1/20/20 3:26pm

As a low risk individual I think you’re fine to pay it off. If you

bluecougar1985

1/20/20 3:16pm

What are the long term options?

SlantRoute

1/20/20 3:18pm

Things mentioned in thread. Real estate, stock market, even several low risk

bluecougar1985

1/20/20 3:22pm

We did it and I like the feeling of being debt free. Am I going to regret

N8Dawg

1/20/20 3:18pm

Pay it off. If you don’t like it, you can go get another mortgage.

ovalY

1/20/20 3:41pm

Do you itemize or take the standard deduction?

cougarfann888

1/20/20 3:18pm

I itemize.

SlantRoute

1/20/20 3:20pm

Remember that if you no longer have your home interest, you may fall below the

cougaman

1/20/20 3:35pm

Especially if you double pay tithing.

Acorn

1/20/20 5:47pm

Yep. If you are paying enough state taxes/property taxes/interest then the

cougaman

1/20/20 5:57pm

Here is how I would look at it....

whiteninja

1/20/20 3:23pm

We've been paying ours down like crazy and will be done next December.

O Gaucho

1/20/20 3:24pm

We did it... fully realizing it was not the most prudent decision purely from an

BoiseBlueCoug

1/20/20 3:25pm

If you can . . .

2FarGone

1/20/20 3:27pm

I paid mine off 15 years ago.

tevye

1/20/20 3:29pm

I don't pay down my mortgage because I don't care much about things. And my

JAGA97

1/20/20 3:33pm

If you can, do it in a heartbeat, even if it doesn’t make financial sense.

UNLVcougar

1/20/20 3:35pm

You will never get back the 8%+ annual averaged returns on that $300k if you

Ash

1/20/20 3:35pm

What safely and predictably yields 8+% these days?

SlantRoute

1/20/20 3:51pm

Nothing safely returns at that yield. But VOO or any index fund that tracks

Ash

1/20/20 5:22pm

Split the middle...pay down to about $100k left on the mortgage, invest the...

CougaReb

1/20/20 3:45pm

For the people who say you should not pay off early because you get better returns investing that money, do you

slappy

1/20/20 3:53pm

Make minimum monthly payments on interest rate barely above inflation. Make enormous returns elsewhere.

mulletino

1/20/20 3:56pm

I'm a wimp when it comes to these things. I know it would make sense, but I just don't have the guts

slappy

1/20/20 4:02pm

Not a bad thing.

mulletino

1/20/20 4:06pm

That’s because you are feeling the risk element missing from all interest rate

ovalY

1/20/20 4:29pm

I built my home in 2001...

CoachSpeak

1/20/20 4:22pm

I love this quote from Pres. Hinckley about James E. Faust.

O Gaucho

1/20/20 4:32pm

That is exactly why I posted what I posted above. That talk from Pres. Hinckely

UNLVcougar

1/20/20 4:47pm

Here's another "ears to hear" quote by President Eyring

Doozy

1/20/20 4:50pm

Except that if my liquid investments exceed the remaining loan balance my

Ash

1/20/20 5:26pm

Unless it is in cash, there is risk the investment would fall below the balance

ovalY

1/20/20 5:31pm

How is that different than if your primary home value falls below the original

JAGA97

1/20/20 6:37pm

If the value falls after paying it off you still don’t have a mrtgage.

ovalY

1/20/20 6:49pm

But we are talking about financially prudent people here who have ways of

JAGA97

1/20/20 7:29pm

Do what you like. Everybody tolerates risk differently. G

ovalY

1/20/20 7:46pm

I have chosen to leverage my money via passive multifamily investments.

CougarThug

1/20/20 5:10pm

Nothing wrong with splitting the difference and saving some money

KSwiss

1/20/20 7:26pm

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