Dow going to 40K? 50K? 200K?. It was a struggle, with “elder care issues”, mortgage notes and rental properties liquidation, but we have been debt free for 7 years. No matter what “ man caused disasters” are surely headed our way, “traveling light” makes for better response. Joe

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Wisdom chases me; I'm faster

If your house was paid off, would you take out a mortgage on it to: what did you say the money would be for?

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"Don't Give Up the Ship"

If you don’t like the feeling you get when your completely out of debt,
Not to worry!
You can always go back into debt!

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NRA LIFE MEMBER

SO many people borrow a ton of money at low rates to invest in a high yield investment. The high yield investment goes South and they are stuck owing money of their house. Me, I'd pay off the house, invest the rest and supplement the investment by monthly deposits in the same amount as your house not was. If something happens you can quit paying for a few months. Can't do that if you have a mortgage. I know LOTS of people who do this sort of thing-it's called "leverage" but as I get older my aversion to risk grows as well. Me-I'm in the Dave Ramsey school of thought. Pay it all off and then still save.Soon you will have a pot full of money and still no mortgage.
Remember, you cannot get out of debt by borrowing money. Another way to put it,you can't be out ofdebt if you still owe money.

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Forum consigliere

Paying off your mortgage is an excellent idea. A better idea is not to get a mortgage in the first place.

If you can't afford to pay for something don't get a loan to buy it.

Pay it off. You’ll be glad you did.

Financial wizards play games with taxes, cash flow, etc. I am a simple man. I want to be debt free. I hate paying interest. Paid off the house in three years. Always pay credit card bill in full. That's me.

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No life story has happy end.

There are lists..

https://files.taxfoundation.org/2020...2020-FV-01.png

Paid mine off in 2016. Never once regretted it.

Kinda nice to sit back and think it's all mine now.

Will still be paying taxes and insurance on it till the day I die.

Our two previous properties/residences were bought with mortgages and paid off quickly. In the first one we lived rent free for a two years and still owned year later when we sold it. The WY residence was bought on a 15 yr. mortgage, but paid off in five. Lived rent free for seven years. This one was bought in Nov. 2019 for cash and have no rent or Mortgage.
In each of the other places we sunk a ton of money into rewires, new roofs, and other upgrades. Also bought two replacement vehicles, so there was a lot of left over cash.
Currently we are totally debt free and paying ourselves. Being "Safer at Home" that is very easy. No travel outside medical, grocery and haircuts. Truck sat in the drive from Nov 2019 through 12/2020 and was driven a total of 895 miles. The Suburban had three oil changes as it got used for everything.
Pay the house off, and bank the payments or buy a new vehicle...American (if there is such a thing) and thumb your nose at the lenders.
Thom Braxton
SWCA #1474

In Texas you never own your own home. Between School District and County Taxes they can take it away from you anytime you do not pay them.
1984 wife and I borrowed $50,000 for our new home we built. 13 1/4 percent interest with a 20 year note monthly payment $719 with esgrow included. Two years later we refinanced at 9% payment 15 year note with esgrow $595.
Today taxes and insurance about $595 a month.
Either way pay off pay it off!

Real simple , Trump administration invest the money , Biden administration pay off the mortgage.

I managed to pay off my mortgage in 2007. Because of that I was able to retire in 2014 at age 60 on the very first day I was eligible. I never could have done that if I'd still had house payments to make.
Owning your home is real freedom.

I would probably avoid my locale. 40 miles east of NYC on Long Island.
Four bedroom colonial/about 2400 sq ft, two car garage, half acre. RE taxes are 17k and change.
It could be worse. My neighbor has a 5000 sq ft home on two acres. His taxes are 40k, and the house is pretty much sitting vacant.

My advice is pay it off.

Further, anyone saying you need the tax deduction is terrible at math. Your interest deduction normally saves you ten to twenty cents in taxes for every interest dollar paid to the bank. I would much rather give the government their 20 cents and keep the remaining 80 cents myself. Phrased another way, I will gladly pay you 20 cents each for any extra dollar bills you have sitting around. However, if your income tax rate exceeds 50% the deduction might make sense.

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Infected by Smith&Wesson

There is no freedom quite like being debt free...worth every cent

100%
Been partnering w Vanguard for close to 18 years now.
Low fee's , simple investing (I prefer the target retirement dated funds) and they "aint gonna belly up and run off w your money".

I love it. I wish I could have been there when you did that.

I agree totally with you. My retirement has been made a lot easier by not having that big house payment going out the door every month.

I remember years ago I had instinctively accepted this premise but I couldn't explain it. Finally Dave Ramsey put it so very succinctly: "Why should I pay the lender a dollar to save 28 cents on my taxes?" With that, the light bulb went on. By the time I retired, I had all of my debts, including the second mortgage paid off. When the opportunity came up to be able to pay the first mortgage off, I bought my freedom.

Honey and I bought our "dream" home last May/June. Took out a new 30 year at a low rate. Only needed an extra 120k to do it and now we find ourselves in the position to pay it off. We are not smart enough not to. I understand both positions of this debate, but we are going annoy the bank and pay it off.

As others have said, everyone's circumstances are different. For me, paying off the mortgage allowed me to retire earlier. Best decision I ever made.

I am not a financial, banking, real estate or investing expert, but I paid off my home 5 years ago and it made me happy. I think your decision needs to be based upon what you are comfortable with and advice from experts such as accountants, real estate or financial advisors etc.. If you don't think you have sufficient knowledge or experience to make an informed decision. I offer no opinion, just my personal experience. I know when financial advisors are mentioned there are folks that will knock them saying things such as "their goal is to make your money theirs", absolutely true. But the same is true of anyone in business, be it your doctor, dentist, plumber, lawyer or any retail establishment including your local gun shop. I would certainly not try to perform a root canal, heart bypass upon myself or defend myself in court litigating a serious problem and will gladly pay for an expert in the field.

I contracted with a financial planner about 6 years ago, he has separated me from some of my money but I am glad he did based upon my return over those years. I interviewed several planners at different firms and am happy with with the person I chose. We have both done well. Good luck on your decision!!

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John. SWCA #1586

No better explanation is possible!

Pay off everything as quickly as possible. Once a debt is retired the payments you have been accustomed to making can be saved or invested with no change in your standard of living or cash flow. When an emergency arises you can pay the bills, then get back on track with your long-term plans and goals.

We purchased our current home with a check, not a mortgage. Our last home was financed with a 15-year mortgage and paid off in 7 years, then the house payment money went into a money market account and retirement investment funds.

We retired with no debt at all. I just cannot imagine trying to retire with mortgage payments, car payments, credit card bills, or all the other budget busters that some folks consider as normal.

We are just getting into the years of "required minimum distributions" in our tax-deferred investments. The challenge now is taking the minimums allowed without significant tax liabilities and figuring out which savings account to put the money away in until we decide how to spend it.

Life is good. Debt-free is even better.

Excellent plan. If you figure out a method to not incur significant tax liabilities on your RMD please let us all know! I reinvest my RMD into a slightly more conservative investment, worked well so far.

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John. SWCA #1586

Man, there is some solid advice in these posts. OP, you just have to figure out which is best for YOU. One word of caution, when people say to consult a financial advisor, you can contact two different ones and get three different opinions. Ultimately it will be up to you to decide. The financial person stands to make commissions off of money you invest.

Several years ago we determined to pay off our home early and we did. Like others said, it feels wonderful. We have lived conservatively for the last 5-6 years using only my school pension. Eventually, the stinking taxes are cutting into the cushion as my pension does not increase. I just do not think I could go back to having a house payment again, even if it were for a "dream home."

Standard advice would be to invest and try to make more than the interest you are paying. There is just no guarantee of that right now and my opinion it is getting less likely everyday. You could always invest and take the earnings off each quarter or year and pay towards the house and at the same time put a floor under your investment so it sells if things go south too quickly. That is risky as well though.

I worked in education and never made much money. My wife was a para and barely made minimum wage but we did fine, no complaints. My goal was to pay off the house, have all vehicles paid for and a few years old, and two years of expenses of cash and most of all bullets, primers and reloading supplies laid up so I didn't have to spend money on that stuff when I retired. I accomplished all of it by the Grace of God!

I forgot to mention, I have two rental properties as well. One paid for and owe a little on the other. Both are remodeled and nice properties. Having money invested in some hard tangible assets is good in my opinion.

Best of luck as you make your decision.

@ The OP, Best to you and yours during these times. This is a topic that comes up every now and again. This is just my opinion:

Pay off your primary residence asap.

Reinvest the money you would be spending. Be mindful of those who charge exorbitant fees or consulting, because they are 'in the know'. Exclusivity is a sales tool. They want high net-worth individuals, which is fine in and of itself, however, when they state gains in terms of dollars, that's where you need to keep perspective. No shares of land in Florida...no percentages of an oil ship...no gold that you don't have in hand. The investors tend to fall into the category of amazement when discussing this or that Billionaire; be it, Elon, or someone else...very few think of the creation of value and the process by which it is made, the management team, execs, et cetera.

Be mindful that some investors are trying to have you move money for commission. Do not give in to the passions or emotions on an investment. Be objective.

Never forget you are the decision maker. Everything else is noise.
My Dad, bless him, now deceased, quoted the typical 'neither a borrower nor a lender be'. He was a stockbroker for almost 50 years...

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Rather be outdoors

Another vote for paying off the mortgage.

We paid off our home years ago and it is a wonderful feeling.

I know all the arguments for investing the monies based on historical returns but for us the "Sleep Good At Night" factor was and has been well worth the cost of potential gains we might have gotten.

gamboolman...

The year my wife and I retired we paid off EVERYTHING. No more payments for home/cars etc. If we want something now we pay cash for it. Never again monthly payment books........That was 7 years ago. We still live by that.

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S&W Accumulator

Back in 2004 we asked our financial advisor if we should pay off our mortgage or keep it for the deduction. His answer was is the money better off in your pocket or the banks pocket. We paid the mortgage off. That was the last interest we've paid. The most CC interest we paid was $1.29 after missing a payment period. That was about 1976. Have never paid CC interest since. If we don't have the money to pay for it, we don't get it.

What mortgage??

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Kenny
Endeavor to persevere.

Three words - Pay It Off

@ the OP, circling back while taking a break from chores. This is my observation only: It is interesting that folks can justify the reason for their decisions, whatever they may be.

I know some very smart, professionals that insist that it is not very 'smart' to pay off the loan for the house because it is at such a low rate. I suppose if someone had a lot of high-interest credit card debt, this may be applicable. However, if you have the means to pay off your home, do it. I think you will find it helps even in other non-monetary matters, such as: peace of mind. Best, TH.

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Rather be outdoors

Absolutely get rid of all mortgage and any other debt. No doubt about it.

If I already had a decent level of retirement income set up and came into a chunk big enough to pay off the mortgage(s), that's what I'd do. Especially if there would still be some left over.

Getting the mortgages on our house and lake properties paid off is the only reason my wife and I are both still working. That and hitting 62 so we can draw our social security benefits.

Just over 3-1/2 more years...

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Send lawyers, guns & money...

G-Mac
Since you have consulted with a tax person and have that info. Would it be prudent to sell the rentals and just commit to bank the money for a couple months? See how the market is going to adjust to the new administration. We are at an all time high. You can pay your mortgage off at anytime. Sell the rentals and just sit tight with your money for a couple months and see what happens?
Your age and risk tolerance will enter into it also?

Great hypothetical story problem for high schoolers. Along with thorough understanding of all types of insurance. Stuff they really need to know.

Morgan88

Pay off the mortgage.Its a no brainer.Years ago when I did-not have a lot of money we bought some acreage it was a great deal but at the time was a real struggle to make the payments.We came into a one time payout from the coal company who undermined us and immediately put the entire sum on the mortgage.Paid the rest off in a year.The property like a home has increased in value and I`m glad we paid it off.It freed up investment money later on when we wanted/needed it.

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SWCA#2288
SWHF#407

Only way to go in my book. The Great Reset includes plans to make anyone owing money to banks (lending agencies) forced to convert that mortgage and/or any loan debt to the new global currency (means of exchange). In effect, persons in debt will sign over ownership/title to said lending agencies and be forced to rent back that property until the globalist agency in charge takes over ownership upon the renter's demise. Welcome to Democrat-sponsored Financial Feudalism folks.

There is another thing to consider besides interest rate versus portfolio gains . For us it was cash flow . When we retired our monthly income dropped . By paying off our mortgage we were able to live off of our pensions and Social Security and not touch our 401k's . And , peace of mind is worth a lot as well .