Post whatever is on your mind!!

[RedSN]

(unless it's used for investment like the 9% used it for potentially)

With interest rates still at historical lows, they say paying off your mortgage vs investing your money is not a good idea.
i.e. i makes more sense (cents literally) to invest your money at 9% rate of return then to hurry up and pay your 2.3% mortgage.
But I just can't do it. That mortgage needs to be gone!

[hammerhead]

It is a "bad" thing if it's consumer debt...just like with credit card revolving debt, just at a lower rate. It still means you're spending more than you make (unless it's used for investment like the 9% used it for potentially). It's been pretty common in both US/Canada (more so US) before the 2008 crash and becoming so again afterwards.

I realize that but kinda why I said the example yesterday was setup similar to a second mortgage - the first never drops the principal artificially extending the amor date of the first - the trick is restraint - max it out good luck - but there are lines that can work to ones advantage again restraint - I live credit card free and I'm no millionaire...

[hammerhead]

With interest rates still at historical lows, they say paying off your mortgage vs investing your money is not a good idea.
i.e. i makes more sense (cents literally) to invest your money at 9% rate of return then to hurry up and pay your 2.3% mortgage.
But I just can't do it. That mortgage needs to be gone!

I believe it - I was never understood the hurry - most people that I know who did it had no life then they got old - when I say quicker I'm referring managing larger payments without penalties - i'm never in a rush to pay my house down not with 6 kids...lol

[RedSN]

I was never understood the hurry - most people that I know who did it had no life then they got old

learned behavior/fear from watching my parents suffer through the late 70's early 80's not knowing if the bank was going to take the farm.

[True Blue]

With interest rates still at historical lows, they say paying off your mortgage vs investing your money is not a good idea.
i.e. i makes more sense (cents literally) to invest your money at 9% rate of return then to hurry up and pay your 2.3% mortgage.
But I just can't do it. That mortgage needs to be gone!

Couldn't agree more... I'm still using the original 35+ year old kitchen in my place, I don't care. I could easily do a full reno now and be further down the rabbit hole, but nope. I'm focused on killing the mortgage fast and hard. I'll sleep better at night once it's paid off.

[hammerhead]

learned behavior/fear from watching my parents suffer through the late 70's early 80's not knowing if the bank was going to take the farm.

things where a lot different then - I had a mortgage in the 80's it was stressful - just getting a 5000.00 loan wash and panic and that decision from the lender didn't happen over night like it does today they made you sweat your bag off everyone uses finance different - I fear investing and real estate is the only choice for me - but as you pay down your house the value increases so the rate of return may be higher and safer than the actual investment numbers you stated - I've owned real estate since around 1986 and never lost - I will admit I did get real lucky during the down turn in the late 80's before the bottom fell out of that recession...

[hammerhead]

Couldn't agree more... I'm still using the original 35+ year old kitchen in my place, I don't care. I could easily do a full reno now and be further down the rabbit hole, but nope. I'm focused on killing the mortgage fast and hard. I'll sleep better at night once it's paid off.

nothing wrong with that - my wife is hounding me all the time - much of our house is still in 1989 and even some of the Miami Vice colours are still present - i'm slowly picking away at it so some room are 2020 and others are 1989...lol

[92redragtop]

I realize that but kinda why I said the example yesterday was setup similar to a second mortgage - the first never drops the principal artificially extending the amor date of the first - the trick is restraint - max it out good luck - but there are lines that can work to ones advantage again restraint - I live credit card free and I'm no millionaire...

You can separate the HELOC from the mortgage and keep the payments separate so you can monitor the principal paydown independently plus if you actually used the equity for investment you have it separated for interest tax deduction purposes.

[92redragtop]

I believe it - I was never understood the hurry - most people that I know who did it had no life then they got old - when I say quicker I'm referring managing larger payments without penalties - i'm never in a rush to pay my house down not with 6 kids...lol

I believe in pacing and doing both (I don't like the mortgage either) so you end up with paid off home (doesn't matter as much on investment properties as leverage works there) and 7-figure (or more) investment portfolios (if you invest early enough to let compounding work for you).

[92redragtop]

With interest rates still at historical lows, they say paying off your mortgage vs investing your money is not a good idea.
i.e. i makes more sense (cents literally) to invest your money at 9% rate of return then to hurry up and pay your 2.3% mortgage.
But I just can't do it. That mortgage needs to be gone!

Yeah, two streams of thought on that but if you can do both.......

The 9% is not actually ROE/ROI but rather the percentage of HELOC borrowers who used the money to invest (I assume appreciating assets) versus the percentage who used it to buy TVs, cars (depreciating assets), effectively wiping out that equity. If the return rates were 9% it would be a no-brainer to invest. On the flip side, at low mortgage rates more of your payments go to principal paydown versus interest.