Category: Mortgage

Taking a Balanced Approach to Mortgage Payoff and Financial Independence

Over the past few weeks, I’ve come across conflicting information: paying off one’s mortgage early or investing the money one would have used to pay it off early.

Each side of the coin sits firmly in their belief, but they always go back to the choice being a personal choice. Personal finance is a personal matter of not only numbers logic, but emotions.

Don’t think personal finance is significantly emotional? Try and tell someone they shouldn’t have their $7 cup of Starbucks every morning because they could save $2,548 annually and invest that with a return of $36,832.45 after ten years… just for skipping a daily coffee habit. I made that mistake, and the response wasn’t pretty. Continue reading…

Running the Mortgage Payoff Numbers

3D Finish First

Photo via StockMonkeys.com

One would think it would be pretty cut and dry with deciding to pay off the mortgage or not. As I’ve looked at the numbers over and over again since declaring our goal, and as we’ve run into extra expenditures that weren’t factored into our 4-5 year off payoff plan, I’m starting to see the direction that would be best for us to go. The light at the end of the tunnel is getting clearer…

There are two concerns I have about paying off our mortgage so quickly.

One is that it limits our ability to put away extra money for retirement or other investing. We probably will sell this home as we approach retirement and downsize (and we’ll easily have it paid off by then either way). I don’t want to lose out on compounding interest over time by taking what we’d be investing and limiting it for several years. Continue reading…

Paying Off Our Mortgage in 5 Years?

3D Shackled Debt

Photo: www.stockmonkeys.com

I’ve been going back and forth on the idea of completely obliterating our mortgage in the next 5 years or less. You’ll find financial experts on both sides of the coin who will tell you to not worry about your mortgage debt if the interest rate is low (around 4% or less) and instead use your money to invest. On the other hand, other experts will tell you to get out of debt entirely as soon as possible.

Mortgage debt is extremely personal to everyone who holds one.

Personally, I don’t like debt. I never have.

Continue reading…