Poll: Paying off your mortgage early...
In today's world, a good idea
In today's world, a bad idea
Undecided
[Show Results]
Note: This is a public poll, other users will be able to see what you voted for.
What's your opinion on mortgages? Specifically paying them off early?
Post Reply
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
17-04-2015, 10:59 AM (This post was last modified: 17-04-2015 02:41 PM by Bucky Ball.)
RE: What's your opinion on mortgages? Specifically paying them off early?
(14-04-2015 10:53 PM)earmuffs Wrote:  
(14-04-2015 08:51 PM)BryanS Wrote:  Whether paying the mortgage off makes sense depends on the individual.

Mortgage interest in the US is tax deductible. In my case, my effective interest rate is less than 2%. It is possible to lose money on an investment, however, so for some people, that 2% guaranteed return from paying off the debt is more appropriate than the risk that they might lose money on their investment.

Wait, mortgage rates in the US are 2%!? fucking hell that's low. They're almost 7% here.

Might as well invest in that case. Hell, slap it in a high interest savings account if you're so worried about risk.

There is no such thing as a "high interest savings account" these days.
One way to get a decent return is to research (a must) a broadly based fund with a good track record, of broadly diversified high yield ("junk") bonds. They pay a decent rate, but there are times when you DON'T want to be holding them.

Insufferable know-it-all.Einstein God has a plan for us. Please stop screwing it up with your prayers.
Find all posts by this user
Like Post Quote this message in a reply
17-04-2015, 01:55 PM
RE: What's your opinion on mortgages? Specifically paying them off early?
I just refinanced my mortgage from a 30 year to a 15 year mortgage. I want to be done by the time I'm 60 which is well before retirement. My monthly payment only increased by $200.

Liberty loving, gun owning Atheist. Don't worry it confuses the right as well.
Find all posts by this user
Like Post Quote this message in a reply
17-04-2015, 02:31 PM
What's your opinion on mortgages? Specifically paying them off early?
(17-04-2015 01:55 PM)aesirus Wrote:  I just refinanced my mortgage from a 30 year to a 15 year mortgage. I want to be done by the time I'm 60 which is well before retirement. My monthly payment only increased by $200.

Getting a 30 year mortgage and paying a 15 year payment makes more sense. By doing it this way if you get in a pinch you can pay a smaller amount until things get better.
Find all posts by this user
Like Post Quote this message in a reply
[+] 1 user Likes KUSA's post
17-04-2015, 02:57 PM
RE: What's your opinion on mortgages? Specifically paying them off early?
(17-04-2015 02:31 PM)KUSA Wrote:  
(17-04-2015 01:55 PM)aesirus Wrote:  I just refinanced my mortgage from a 30 year to a 15 year mortgage. I want to be done by the time I'm 60 which is well before retirement. My monthly payment only increased by $200.

Getting a 30 year mortgage and paying a 15 year payment makes more sense. By doing it this way if you get in a pinch you can pay a smaller amount until things get better.

Yeah, I used to give that advice as well. The reality is there is always 'something' that comes up and you can't pay that extra for a month, then two, then three...
With a 15 year mortgage you're done in 15 years whether you pay extra or not. Given my vocation I'm unlikely to unemployed for any length of time. I also have a couple of months of payments in savings. I'm doing the Dave Ramsey light approach. Shedding debt, cancelling credit cards, building up savings, and getting rid of my house payment before retirement.

Liberty loving, gun owning Atheist. Don't worry it confuses the right as well.
Find all posts by this user
Like Post Quote this message in a reply
[+] 1 user Likes aesirus's post
17-04-2015, 03:17 PM
What's your opinion on mortgages? Specifically paying them off early?
I hear ya. Most people can't discipline themselves to make the higher payment. I just set my auto pay on the higher amount and don't think about it anymore.
Find all posts by this user
Like Post Quote this message in a reply
[+] 1 user Likes KUSA's post
17-04-2015, 03:19 PM
RE: What's your opinion on mortgages? Specifically paying them off early?
(17-04-2015 02:57 PM)aesirus Wrote:  Yeah, I used to give that advice as well. The reality is there is always 'something' that comes up and you can't pay that extra for a month, then two, then three...
With a 15 year mortgage you're done in 15 years whether you pay extra or not.
Sounds like a matter of discipline. Forcing yourself to pay twice as much rather than doing it voluntarily because you think if you have the choice you won't opt for the extra payment.

I prefer fantasy, but I have to live in reality.
Find all posts by this user
Like Post Quote this message in a reply
18-04-2015, 10:30 AM
RE: What's your opinion on mortgages? Specifically paying them off early?
(17-04-2015 03:19 PM)Adrianime Wrote:  
(17-04-2015 02:57 PM)aesirus Wrote:  Yeah, I used to give that advice as well. The reality is there is always 'something' that comes up and you can't pay that extra for a month, then two, then three...
With a 15 year mortgage you're done in 15 years whether you pay extra or not.
Sounds like a matter of discipline. Forcing yourself to pay twice as much rather than doing it voluntarily because you think if you have the choice you won't opt for the extra payment.

Yep. I'm well aware of my weaknesses and monetary discipline is one of them. It is the most common especially in this culture of consumption. I know full well if I leave it up to myself I find an excuse not to pay extra. It's why going to the gym is such a monumental task.

Liberty loving, gun owning Atheist. Don't worry it confuses the right as well.
Find all posts by this user
Like Post Quote this message in a reply
Post Reply
Forum Jump: