Deciding to pay off house with retirement savings...

[huntnful]

Why not take the money out of your retirement account then and only if that happens? Residential interest rates are so low right now. Nothing wrong with it paid off. I am working on it too with my current goals and plan, but to pay extra to the tax man just to pay it off and have “freedom,” when you could have that money gaining in the market right now. Just my 2 cents.


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That ended up being my exact perspective as well. I have a stable job, and if something crazy we’re to happen, hopefully it wouldn’t coincide with the stock market. The money would be available, and growing if needed. So far it’s been a great decision to refi the house at 2.25% and put the $260k back in the market. Market value is up at $320k now and I’ve already paid an extra $10k on my principal since most of my money is going toward principal instead of interest now.

 

[Marble]

Why not take the money out of your retirement account then and only if that happens? Residential interest rates are so low right now. Nothing wrong with it paid off. I am working on it too with my current goals and plan, but to pay extra to the tax man just to pay it off and have “freedom,” when you could have that money gaining in the market right now. Just my 2 cents.


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Because if you take it out early you pay penalties and taxes (depending).

I'm not sure what you mean by paying extra to the tax man.

For me, although I haven't paid mine off, I am working on it, I have health issues. So if I get retired before I plan on retiring, then having a paid off home would put me in a position to not worry about money.


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[ddd-shooter]

That ended up being my exact perspective as well. I have a stable job, and if something crazy we’re to happen, hopefully it wouldn’t coincide with the stock market. The money would be available, and growing if needed. So far it’s been a great decision to refi the house at 2.25% and put the $260k back in the market. Market value is up at $320k now and I’ve already paid an extra $10k on my principal since most of my money is going toward principal instead of interest now.

If your employer has an issue, it'll probably coincide with the stock market in some way. Same for real estate devaluation.

But, I don't think I'd pull anything out of the market either.
That said, if you do pay it off, you could take the mortgage payment you're currently sending out and putting it in retirement funds- or better yet more real estate.

 

[KoolBreeze]

Never a bad idea to be debt free and own your home. And at your age? Wow, that’s quiet accomplishment! Congratulations!