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

[Pacni99a12]

Hes right.

 

[CrimsonTider]

Exactly bruh...in your example you talking about 7% in your 60s and 70s. You are lucky to get 5% on safer investments.

No I’m talking about 30 years of money compounding at 7%z in your 60% and 70s the money would’ve been all made by then

 

[CrimsonTider]

you think the average american is doing this or have the discpline to do this?

these financial gurus eat of dumb people. i wouldn't take what they say seriously.

I think what I described is more normal than dumping a lump sum of cash on something that doesn’t have to be paid yet.

People use their extra money to do more meaningful shyt than to pay off a debt that isn’t due for decades

 

[CrimsonTider]

Average cost of a home in the US is 420K with an interest rate of 5.27 I'm being very generous here with this rate but we'll stick with it for now

Monthly payment
$2,324
Total interest paid
$416,806
Total cost of loan
$836,806
Payoff date
May 2053


This is the total interest on the loan for the lifetime of the loan for 30 years.....if you pay it off early you can wipe some of the interest off. The average person is not good with "investments" so spare me the BS argument of the "extra money can be invested in something".....

You don’t have to be good with investments to earn 7% annually. That’s what the sp500 has historically done

836k in 30 years is 6.6 million dollars

Y’all are in here saying you should forgo over 6 million dollars in returns to save 400k

 

[Kurt off them percs]

6 figure years, 6 figure months, 6 figure deals

Definitely a coli poster

 

[The Half-Blood FKA Prince]

Bullshyt. Another influencer/guru babbler steering folks wrong. Getting that interest down and getting to your equity sooner, especially if you aren't one of the lucky people with 3% or better rates, is the move.

Screen name is screen naming

 

[The Half-Blood FKA Prince]

Believe that bullshyt if you want

Yeah it seems like terrible smart dumb babble, but who are we to question brehs credibility? Its not like they give IG pages to
just anyone

 

[Darth Nubian]

i’m in florida

any extra mortgage money goes straight into my escrow

the insurance and taxes here are fukking us up!!

Aint nothing like getting a letter saying your home owners insurance provider is insolvent. You got 30 days to find another one. Good luck

 

[voiture]

You don’t have to be good with investments to earn 7% annually. That’s what the sp500 has historically done

836k in 30 years is 6.6 million dollars

Y’all are in here saying you should forgo over 6 million dollars in returns to save 400k

The average person only invests in the stock market through 401Ks and retirement accounts. Most people do not invest outside of retirement accounts.
Let's stop the pretense. The average person will be better off buying their house in cash( not possible for over 90% of Americans) or paying off the mortgage early (best option of you can).

836K will not be paid off in LESS than 30 years.... because of the extra payments saving you money on interest.

 

[Turbulent]

He didn't explain why it's the worst financial decision

 

[CrimsonTider]

The average person only invests in the stock market through 401Ks and retirement accounts. Most people do not invest outside of retirement accounts.
Let's stop the pretense. The average person will be better off buying their house in cash( not possible for over 90% of Americans) or paying off the mortgage early (best option of you can).

836K will not be paid off in LESS than 30 years.... because of the extra payments saving you money on interest.

The average person would be better off with 836k in cash and a monthly payment of 2,3000 than

 

[BigMoneyGrip]

No shyt, paying off your mortgage early your still on the hook for the property taxes… Keeping the mortgage actual lowers your tax liability

 

[beenz]

It’s not the smartest thing to do

Having a large sum of cash that is compounding and growing exponentially is more peace of mind than being debt free

if my house is paid off, I'm taking that mortgage payment each month and sending it to my brokerage account to purchase more stocks, index funds and mutual funds.

with that plus my 401K, I'd be building wealth ridiculously quick.

 

[voiture]

The average person would be better off with 836k in cash and a monthly payment of 2,3000 than

836K is payment over 30 years...you can slash 1/3 from it if you make extra mortgage payments so it doesn't take you 30 years.
Even the banks know this is a win for the consumer which is why some have started introducing "pre-payment penalties" . They want to discourage the practice.

Prepayment Penalty: What It Is And How To Avoid It​

Prepayment penalty: What it is and how to avoid it

A prepayment penalty is a fee some lenders charge when you pay all or part of your loan off early. Find out what triggers the fee and how to avoid it.

www.rocketmortgage.com

 

[CrimsonTider]

if my house is paid off, I'm taking that mortgage payment each month and sending it to my brokerage account to purchase more stocks, index funds and mutual funds.

with that plus my 401K, I'd be building wealth ridiculously quick.

That would be the definition of hustling backwards