Pay off mortgage or make monthly payments and invest the rest?

[Fowl Play]

We are at page 22 !?!? My goodness… a thread about “should I pay off my house early, or drop $100k on a guided sheep hunt” would have been less controversial.

 

[Tahoe1305]

It’s not controversial. Just strong opinions on really exactly two view points (which is rare here).

It’s died off a bit. Many repeated arguments.

The new hotness is the buying a new car thread. Nice work @Ucsdryder

Edit: I guess that is the exact definition of controversial…good thing I’m good at math and suck at English.

 

[Ucsdryder]

It’s not controversial. Just strong opinions on really exactly two view points (which is rare here).

It’s died off a bit. Many repeated arguments.

The new hotness is the buying a new car thread. Nice work @Ucsdryder

Edit: I guess that is the exact definition of controversial…good thing I’m good at math and suck at English.

Just trying to keep the clicks going.

This thread created some excellent discussions!

 

[CorbLand]

Just trying to keep the clicks going.

This thread created some excellent discussions!

You buy a stake in Rokslide?

 

[Ucsdryder]

You buy a stake in Rokslide?

I get kicks backs for clicks. Don’t you?

 

[CorbLand]

I get kicks backs for clicks. Don’t you?

Naw, I am like the unwanted step child around here. Only loved when it’s convenient.

 

[maxx075]

Also another factor here is that some of you are hedging on that you'll still be alive to enjoy that money x years down the road. Your kids might be blowing your investment on OF subscriptions

 

[RDF1]

I'm going to cry the day my 2.8% mortgage is done
It literally is like free money.

This confuses me. How is a 2.8% mortgage "Like Free Money"?

 

[SWFLhntr]

This confuses me. How is a 2.8% mortgage "Like Free Money"?

Because it is incredibly easy to make more $$ than what you are paying in interest safely. Maybe cheap money is the better term but I'll go with free.........because it basically is. Wish I had borrowed more at that rate. We may never see it ever again.

 

[RDF1]

Because it is incredibly easy to make more $$ than what you are paying in interest safely. Maybe cheap money is the better term but I'll go with free.........because it basically is. Wish I had borrowed more at that rate. We may never see it ever again.

Are you saying you can borrow $200,000 with a 2.8% interest, Then invest that $200,000 into something that has a higher return %?

 

[SWFLhntr]

Are you saying you can borrow $200,000 with a 2.8% interest, Then invest that $200,000 into something that has a higher return %?

I think you're confused. This whole discussion revolves around paying off a mortgage early OR taking those extra funds and investing it at a higher return than the mortgage interest.
BUT, if you want to loan me $200k at 2.8% I'd love to do it. PM me the docs.

 

[mostlybirch]

Are you saying you can borrow $200,000 with a 2.8% interest, Then invest that $200,000 into something that has a higher return %?

If you pay the minimum on a 2.8% loan and put whatever extra you were going to pay down that loan into a checking account making 4% your money is making you 1.2% essentially risk free. Or for slightly additional risk, you put that extra money into your retirement account and it makes an average of 8% annual you are making the difference (5.2%). And this is before the magic of compounding interest.

 

[HFBPA889]

I’ve been thinking about this myself…If I can I will probably pay the house off in 4yrs when I retire. The housing market has been out performing the stock market and owning your house, having the equity, and no mortgage payment would be great.

 

[SWFLhntr]

Well you don’t really have access to the equity unless you borrow against it or sell the house.

 

[maxx075]

No offense, but I'd love to see the housing market crash

 

[180ls1]

No offense, but I'd love to see the housing market crash

You say that, but given how short we are on supply, it would take something catastrophic to cause a crash and you would likely be hurt badly as well.

 

[RyanS612]

At a 3% mortgage rate, investing in the market will usually give you the best return. Especially investing when the market is down. I would invest the extra cash while also putting extra towards your house so you can have it paid off before you plan on retiring.

 

[RDF1]

I think you're confused. This whole discussion revolves around paying off a mortgage early OR taking those extra funds and investing it at a higher return than the mortgage interest.
BUT, if you want to loan me $200k at 2.8% I'd love to do it. PM me the docs.

Confused i was.
Ive never had a mortgage so i was trying to figure out how it was "Free Money".

 

[SWFLhntr]

That’s too bad. You missed out on a great opportunity to build wealth.

 

[maxx075]

That’s too bad. You missed out on a great opportunity to build wealth.

If I had only bought those houses when I was in kindergarten. Damn,