Paying off the mortgage because debt free feels good

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Scott 2
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Joined: Sun Feb 12, 2012 10:34 pm

Re: Paying off the mortgage because debt free feels good

Post by Scott 2 » Thu Mar 02, 2017 7:31 pm

Revisiting this, financial stress is pretty much non existent without a mortgage. For me, the low cash flow demands provide a better quality of life.

Correspondingly, so is some financial discipline. Anything under $100 feels irrelevant. From the perspective of maximizing net worth, paying the loan off was suboptimal behavior.

I'd do it again though. Maybe even sooner.

Papers of Indenture
Posts: 143
Joined: Sun Sep 01, 2013 11:40 am
Location: Baltimore, Maryland

Re: Paying off the mortgage because debt free feels good

Post by Papers of Indenture » Fri Mar 03, 2017 11:46 am

I'm planning on doing the same.

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Dragline
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Joined: Wed Aug 24, 2011 1:50 am

Re: Paying off the mortgage because debt free feels good

Post by Dragline » Fri Mar 03, 2017 4:31 pm

It certainly would be a good diversification move at this stage if you had been riding the bull market but are worried about getting bucked off.

ThisDinosaur
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Joined: Fri Jul 17, 2015 9:31 am

Re: Paying off the mortgage because debt free feels good

Post by ThisDinosaur » Fri Mar 03, 2017 4:46 pm

I do both. Half my savings goes to stocks and the other half to mortgage and student loans. It doesn't make sense to buy bonds with a lower interest rate than my debt, but I'd also hate to miss out on any irrational exuberance.

thrifty++
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Joined: Sat May 23, 2015 3:46 pm

Re: Paying off the mortgage because debt free feels good

Post by thrifty++ » Fri Mar 03, 2017 4:49 pm

In a sense though having zero debt might give you the freedom to take higher risk actions which have a higher potential reward. Eg high risk stocks, starting higher risk business strategies, taking up new career options which you would have otherwise not have undertaken etc.

Jason
Posts: 300
Joined: Mon Jan 30, 2017 8:37 am

Re: Paying off the mortgage because debt free feels good

Post by Jason » Sat Mar 04, 2017 1:32 pm

For someone my age, my net worth is weighted towards securities as opposed to house, so I've been very aggressive recently.

I understand rationally the rent vs. buy vs. payoff enchilada, but I want to be done with it.

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