Paying off your mortgage early is the worst financial decision you can ever make

[chiefdogg]

GTFOH

 

[KRayner]

i’m in florida

any extra mortgage money goes straight into my escrow

the insurance and taxes here are fukking us up!!

i just randomly looked up houses in south carolina….

these florida houses are overpriced AF im bout to cry in the car

 

[Amestafuu (Emeritus)]

mufhukaz been watching financial advice videos since covid and sitting net negative off some coins and movie theatre stock.

stop with the fukking video gurus.

 

[Spence]

is living off of properties not viable?

It very much is if you buy the right properties and have the right crew in place for maintenance issues. My next move if we make it out of this year unscathed is to use profits from the rental to buy smaller apartments and build a portfolio we can pass to our daughters

 

[newarkhiphop]

 

[CrimsonTider]

I think the part of the issue is your premise isn’t completely correct. Most people here are talking adding an additional amount (a couple hundred) to the monthly mortgage payment, not having a large lump some that you use to pay of the remainder of your mortgage.

But thats not really worth discussion is it?

 

[ThaBoyBam]

mufhukaz been watching financial advice videos since covid and sitting net negative off some coins and movie theatre stock.

stop with the fukking video gurus.

 

[Laidbackman]

People who consider doing something else with their extra money instead of paying off their mortgage early, don't consider layoffs, stock market crashes, becoming prematurely disabled, or just plain getting fired.

 

[Cakebatter]

I misread and thought the home was 836. Replace that with 420 and the point remains

Your math still doesn't add up. Your calculations wasn't compounding a small monthly amount over 30 years, but calculating the compound interest of a large lump sum over 30 years, which isn't relevant to the discussion, as no one is advocating paying for a house in cash. Here is an example $300/month @ 7% ROI after 30 years is $342k. That's a massive difference from investing $420k all at once and letting it sit for 30 years @ 7% ROI and ending with $3 million. See the error?

When you start paying extra mortgage payments, you essentially shorten the term of the loan. You can easily turn a 30 year mortgage into a 20 year one. So when you compound $300/month over 20 years @ 7% ROI, you end up with $148k. Well guess what, the avg 30 year mortgage interest rate is 6.81%, today. The capital gains taxes due on investing that $300/ month makes it a worse use of funds than just paying extra principal on the mortgage.

 

[MR. SNIFLES]

Kinda depends on the rate you have no?

YEP.

THESE RATES NOW KINDA MAKES IT A TOSS UP.

 

[Controversy]

This is why it's impt to have two solid incomes in a household when raising a family

I pay the mortgage + utilities and do all the investing...my old lady puts an extra $2k toward the mortgage and puts the savings in joint accounts. We both max out our 401k's...and we both max out our Roth IRA's

Our goal is to have our nearly $600k house paid off in under 10 yrs...we think we can reach this goal by 2030

We still save, we still invest, we still plan to save tens of thousands on mortgage interest by paying the loan off early

I can't tell ppl what to do, but I believe in being flexible, and accomplishing multiple goals simultaneously