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Started by surpass, November 02, 2018, 07:37:42 AM
Quote from: polama on November 02, 2018, 01:59:20 PMI was aggressive about paying off my mortgage at 5.5%, but stopped putting anything extra once I refinanced to 3.5%. I think 4-5% is the range where it cuts over for me, although I should probably factor in the 10 year treasury yield or something more explicitly.The other factor is since I'd been aggressively paying down the loan, added years back to a 30, plus got the better rate, I'm down to about $400 in principal+interest a month. That means the extra cash I need in an emergency fund is relatively low, and if I have to take a big pay cut in a recession I could still cover it. If the mortgage payment was a bigger portion of my salary, regardless of how much was interest, I'd more inclined to pay it off.
Quote from: Dami on November 03, 2018, 02:47:45 PMNow, all I have to worry about is excess cash flow and where to allocate them.
Quote from: Cheezus on November 05, 2018, 04:59:10 PMRemember the warning when it comes to investing... "Past Performance Is Not Indicative Of Future Results"So the mathematical answer is essentially still a matter of comfort, unless you can see the future I would say again. I don't know anyone taking out low interest equity lines and loading it up on VOO. Historically, that would have been a GREAT move. But nobody is doing that or advocating for it.
Quote from: Cheezus on November 07, 2018, 07:49:17 AMI think there is a big difference between leveraging your primary residence and rental apartments. I would strongly suggest to leverage real-estate investments when it makes sense. You do what works for you and that's cool. But the idea of pulling money out of your primary like crazy and reinvesting is a minority opinion for sure.