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Thread: Invest or pay off mortgage

  1. #11
    Senior Member Teacher Terry's Avatar
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    So many young people on MM are talking others out of paying off their homes-saying those that do are dumb. As IL pointed out that is because with youth comes lack of experience. I am definitely in the pay it off camp & we did before semi-retiring. I don't think you will be sorry.

  2. #12
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    Even $100 a month toward the principal wil reduce the mortgage and as income allows, you can add more. I would pay off the house.

  3. #13
    Senior Member Blackdog Lin's Avatar
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    I would pay off the house. The peace of mind is priceless.

  4. #14
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    Wow,a thread where everyone is in agreement thus far.That doesn't happen around here often.
    I also say pay off home.I still owe 85k on a 135k mortgage at 3.35% 15 year term. My DW puts minimum in 401k to receive company match,all of our excess wages above that goes into savings which is then used to pay down mortgage in lump sums.
    Besides what others have mentioned,I also am concerned about possible asset confiscation or a currency reset.Paying down the mortgage could offer some protection in either of these scenerios.

  5. #15
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    Austin is a little bit of a different animal than some other real estate markets right now since it is so HOT. It makes it a little harder to figure these things out. I have elected not to pay ours off since we intend to move and sell anyway. I am socking away the savings rather than paying down principal on a 3.25% loan. For now, the annual rise in value makes up for any lost interest. If anything unexpected happens and we end up staying, I will pay it off then.

  6. #16
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    Hello Mermaid, I am also a psychotherapist by the way !

    Not sure my example would be relevant to you, but I chose to pay off my mortgage when I got severance payment after leaving my old job. This means I have zero debt now and I am actually a home owner (not the bank).
    Moreover, French law allows you to sell your home and still live in it after you turn 60. The buyer pays you a lump sum + a monthly sum and you continue living in your home until you die. Owning a small appartment in Central Paris seems less risky than most other investments, so the choice was obvious to me.

  7. #17
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    Pay you mortgage off as fast as possible. Wife and I paid ours off 14 years ago; (1) it is exceedingly liberating; (2) your options and opportunities in life (financial or otherwise) grow exponentially and (3) you can grow your savings and investments at a very fast clip with no debt.

    Ed

  8. #18
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    Pay off the mortgage. With rare exceptions, always get rid of debt first.

  9. #19
    Senior Member jp1's Avatar
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    Quote Originally Posted by Marion View Post
    Hello Mermaid, I am also a psychotherapist by the way !

    Moreover, French law allows you to sell your home and still live in it after you turn 60. The buyer pays you a lump sum + a monthly sum and you continue living in your home until you die. Owning a small appartment in Central Paris seems less risky than most other investments, so the choice was obvious to me.
    I recall reading a story several years ago about a woman who did this, allowing the purchaser to live in her basement until her death, for rent of $500 equivalent per month (this had happened quite a while ago when $500 was high for rent, especially a basement) if I recall correctly. He was a young man and she was quite old and the purchase price very low, so he thought he was getting an amazing deal. She ended up living well past 100 and the man, his children now grown adults after being raised in the basement, finally got the house at age 60 or so. Personally I don't think I'd take a chance on that deal...

  10. #20
    Senior Member SteveinMN's Avatar
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    Quote Originally Posted by Marion View Post
    Moreover, French law allows you to sell your home and still live in it after you turn 60. The buyer pays you a lump sum + a monthly sum and you continue living in your home until you die.
    In the United States, that kind of arrangement is offered by banks/mortgage lenders and is called a "reverse mortgage". They pay you (not sure if it's a lump sum or monthly payments) for as long as any mortgage holders are in the house. When the last one leaves, the property goes to the lender and they can do whatever they want with it.
    Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome. - Booker T. Washington

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