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Started by RageCage, November 27, 2018, 11:24:41 AM
Quote from: NYFamilyof4 on December 02, 2018, 03:33:31 PMI have a 30 year fixed at 3.375% and am not paying it off. After accounting for mortgage interest rate deduction (I will still itemize vs. standard deduction), the risk-free rate is at worst the same. Since rates are just about a wash, you look to the other benefits when deciding whether to pay it off. The other benefit of paying it off is being debt free. This is outweighed by the benefit of having LIQUIDITY when you don't payoff. If you put the cash in risk-free assets, you have the comfort of knowing you could pay off the mortgage whenever you want with the security of having the cash if something comes up along the way. The key is to stay disciplined with the cash. I'd rather have a $1m 30-year fixed rate mortgage and $1m in cash then no mortgage and no cash.
Quote from: RageCage on December 13, 2018, 06:35:18 AMAfter starting the topic and seeing the responses, it is clear that there really is no right answer. With that said I have decided to pay it off right after the start of the new year. I have always daydreamed about the peace of mind that my largest (and only) debt is gone and want to go that route. Everyone keeps bringing up liquidity but I would still have $x00K in after tax accounts so I don't worry about that. Just going to spend the next 2-3 years socking away the savings from not paying the mortgage and having an even better stress free attitude at work. As I mentioned my industry is shrinking (creative destructionism) and honestly I am burned out; the cliche of hating your job but the money is just too damn good and at my age I won't get it anywhere else. Knowing I don't have to be stressed or grovel/do anything to keep the job is worth more than any additional revenue the "longer game" option would provide me. Good luck and happy holidays!