Quote:
Originally Posted by ImolaMoop
Quote:
Originally Posted by rebekahb
I was doing it because I can go from 4.125% to a credit union of 2.5% and I was going to put down a large chunk of money down at re-fi. I think closing costs will be $3k or under. I'm trying to pay my house off in the next 5 years. Open to reasons on why I shouldn't.
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The reason is you can use the money you're throwing into mortgage payments and chunk down payments to invest in other things. Like stocks or rental properties.
Mortgages are the cheapest money you can get, plus being tax deductible for most people. There is virtually not any 15 or 30 year period in the history of the stock market that wouldn't dramatically pay off in your favor if you chose to invest instead of pay down your mortgage.
Additionally, if you are still eager to pay down your mortgage ASAP, at least do the math on your total interest of a 30 year + extra principal payments versus a 15 year. It's not that big of a difference and you keep the flexibility. |
We have 2 rental properties and I max out my 401k every year. I still have money saved that I could potentially invest. I've thought about buying another rental but just haven't looked into it much.
The other reason I want to get my mortgage paid off is that I am in a job currently where I am doing very well and in my industry I would be hard pressed to find another company to pay the bonuses with how flexible this job is. If I could squeeze a few more years of doing that & pay off my mortgage then I could either work part time or do some non profit work.
Thanks for the input. You've given me some ideas on numbers to run.