Mortgage killing future hunting adventures?

[HairyScandinavian]

It sounds like a nice place and more importantly it sounds like you're happy with it, on that note I'd not let it go chasing stats and numbers. Personally I think hang on to it and wait for a good opportunity to refi on a 15 year note with lower interest rates after the balance comes down some. Interest rates will come down again at some point.

 

[yfarm]

Property appreciation is highly variable depending on when and where you buy. Have been on both sides of the table. Sold a house last September in a medium size city in Illinois, bought in 1991 for 400k and sold in 2024 for 395. Its what the market valued the house in 2024. Bought a repo in 2009 for 435, currently valued at 1.2m is located in Key West. Location, Location and timing.

 

[Skibness92]

Pros and cons to all of the scenarios you can think up. At the end of the day you need to do what is right for you and your family!

 

[ozyclint]

If you're on the edge of town now, just wait 10 years and you'll be in town. Towns generally don't get smaller

 

[missjordan]

For perspective where i live in western Montana. Cookie cutter homes in town with no breathing room start in the 500’s. Want acreage? That starts in the 800’s maybe high 7’s if your lucky

So there’s the possibility you downsize, take a full mortgage out anyways, Take the extra capital you don’t need and put it to work on some dividend paying ETF’s. Let that make most of your house payment. Rent it out after a couple years, rinse and repeat. I’m no financial advisor. but I’d put money to work either way if it was me. 5 and 6 figures in the stock market will give you more leverage today then a 4 figure payment into it over the long term. Both obviously can coexist just fine. But put your equity to work where you can


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[tony]

Just comes down to priorities. Im 33, single, live in a tiny (600 sq ft) home that costs me $320/month all-in. I bought it with the idea that i didnt want to ever be house poor like all my friends nor change my lifestyle and i would rather use that money on adventures, hunts, fishing trips. Ive lived there 8 years now, 0 regrets.

Similar idea as well.
I’m 56, rent a 2 bedroom tiny apt for $350. My debt is next to nothing and next month will be close to zero as I pay my truck off.
My age and seeing home prices and what people pay. I will just keep doing this.

 

[The Truth]

The Truth talks about being bothered that he would wind up paying twice his value of his house by the end of his loan. Money invested now at 8% would be worth nearly 9x it's value in 27 years. Keep that in mind before choosing to pay off your house.

Yeah I got flamed for it. But I still wouldn’t do it differently. I could afford my mortgage as it was, but not much more. My wife and I still save aggressively for retirement, even more so with the extra monthly money I’m saving without a mortgage. But we are living a much more free life, vacations, good hunts, and I’m purchasing a piece of hunting property that I wouldn’t have been able to afford otherwise. I’m 42 yrs old. I got a ways to go until I retire. I don’t want to wait 20 years to be able to live the life that I can live right now. I’m reaping the benefits. I might not be able to do this stuff when I’m 65.

 

[The Truth]

Great perspective! Thanks! Was the windfall from an inheritance? My wife and I talk about factoring that in... but that isn't a guarantee either. The nice thing about cash, is it gives you options. Maybe down the road i could buy an even better spot to hunt. If I had the money, I'd buy a nice size farm that has good crop production / cash flow, but also a 30 acre corner of prairie and timber to play on. But that ain't the case lol! And by the time I could save up and buy what land is worth today, it will be worth a crap load more.

Not an inheritance. My wife worked for an employee owned company. She accrued quite a bit of stock and when you leave the company they buy your stock back. We still had about 50% left after paying off our house. Plus, because we bought in 2020 our house is now worth over twice what we bought it for because of the market. I feel like it was a win

 

[AZ8]

If you want acreage I'm my town, you better have some coin.

 

[go_deep]

I strongly suggest for the young up and comes to find a side gig, if your current job doesn't offer nearly unlimited OT. Starting out I had 3 part-time business going, that how we got ahead.

 

[ez_willie]

He

If you want acreage I'm my town, you better have some coin.

View attachment 921193

He wants to live in gods country and not scoop snow in July

 

[TaperPin]

A home is where your kids have most of their memories growing up and where the rubber meets the road in being a family, so a decent house isn’t a bad thing. There are other places to be frugal and stretch dollars for savings and investment. Your kids are learning how to manage money from how you’re living your life. When there is a dip in the economy you’ll have a chance to refinance at a lower rate, so make sure the house is well maintained so it can pass an inspection and keep documents needed for a refinance easily accessible. Keep your eyes peeled over time for mortgage companies with inexpensive money for refinancing.

You’ll also never have as much energy as you do right now so make the most of it on your property and side gigs. Live below your means in as many ways as possible and over time you’ll see family after family that didn’t do that and when one of life’s curveballs is thrown at them, they will end up living in a crappy rental or with their elderly parents.

Stay put and get the idea of moving into a better house in 7 years out of the family’s conversations. Drive your cars longer than you should and replace them with good used ones. Eat $.14 oatmeal for breakfast, stop eating out, teach the kids to cook healthy food. Be good.

 

[S.Clancy]

No offense, but 37 isn't young, you're basically half way to dead. Whatever you want to do you better get after doing it

 

[Sneaker]

Everyone is different. At least paying a mortgage you have the appreciation opportunity. If you can afford your payments, and really like the place, I would consider staying. If the economy ever tanks super bad, interest rates may come down low enough to save alot by refinancing. But nobody knows the future.

 

[rayporter]

built a house and paid it off early. paid cash for this place and was able to retire early. no regrets.

but to live in town? no way, no how.

 

[Hnthrdr]

T

If you want acreage I'm my town, you better have some coin.

View attachment 921193

They can ask whatever they want for the land… it’s only worth what someone will pay for it, that seems like some serious angling going on haha

 

[Rich M]

We bought a reasonably priced house in city, managed to keep it thru losing a company to the 2010 recession. It has increased 4-5x in value. Was 8% when we bought, paying 3.5% right now. Insurance is about 40% of our mortgage payment.

Bought 12 acres in country and are outfitting it for retirement. Financed it but could pay it off. Rather have the $ in the bank.

Build up that cash pile for the future. The interest from that is what is gonna pay the bills when you dont work.

Sounds like a nice place you have. Your interest payments will never be as high as last year.

Good luck! Find a balance in saving and paying principal down. Then switch to maxing out savings as you can. Compound interest and time is what builds wealth.

 

[pacoalcracker]

Don't plan on interest rates coming down any time soon. Not happening with the USA in debt to the tune of 40 Trillion. The FED can lower interest rates all it wants, and it won't matter since mortgage rates are not based on those short term rates at all. Matter of fact, when the FED dropped the short term rates last fall by 50 BP's, mortgage rates went up, not down. At that time, bond holders felt the FED was making a mistake by lowering rates too soon and wanted a higher premium for the higher risk. They were not wrong either...matter of fact, equity markets follow the direction of bond markets because they are almost always correct....and the bond market is 5x the size of the equity market. Mortgage rates are founded by adding the current inflation rate with the current 10 year bond rate, for a 30 year with a very slight decrease for the 15 year mortgage(shorter interval is less risk for bond holders). Since 10 year bond holders want a premium for taking on the risk of the govt in debt by 40 Trillion, it's very unlikely interest rates come down much, if any,,,and quite likely they stay up or go even higher as the USA takes on more debt. DJT is adding 5 trillion to it. Sorry to be a spoiler, but that is just the facts. Unfortunately, most people have no idea how mortgage rates originate, but now you do.

 

[pacoalcracker]

Coltaur...stay where you are and put every spare penny you have into a great ETF that is going to grow that money way faster than your mortgage interest rate is going to cost you. As it relates to compound interest, you are either paying it or collecting it.

Mortgages are amortized the way they are because the people, the investors backing your mortgage want their money back as soon as possible with the least amount of risk as possible, for a specific risk premium, so they get paid as quickly as possible. Wouldn't you want it that way too if it was your money backing that mortgage?

 

[AZ8]

T

They can ask whatever they want for the land… it’s only worth what someone will pay for it, that seems like some serious angling going on haha

Crazy thing….it will sell. At that price? Who knows. But the market here is just stupid! If you want, I’ll update you when it sells. haha