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As long as your other bills get paid, your emergency fund stays intact and you max out your 401K – why not pay off the mortgage?
My husband and I paid ours off last year and it’s been fabulous. I’d been making double payments for a few years before, so it’s been like acquiring a second income.
Just a note – a hundred bucks a month would never cover home maintenance costs for us. But we’re DIYers and always have some sort of project going.
[...] This post was mentioned on Twitter by Peter Freer, Peter Freer. Peter Freer said: The No-Mortgage Budget: [...]
My husband and I feel the same way. Our mortgage is also at 4.875%, but it seems crazy to want to keep the debt for the next 14 years (15 year mortgage originally). We also would like to pay it off early and be that much closer to financial freedom.
What do you intend to do after the house is paid off?
In your case the answer may be “retire from full-time work and blog’n'stuff” … but, for most people the answer is to start investing.
I would lock in my sub-5% mortgage for as long as possible and invest every penny that I can get my hands on into RE and/or good American businesses.
If you think <5% is going to be a good 'average return' for the next 10 years, then you'd better sell everything up and head for the hills
If you can truly afford to pay off your mortgage in five years. Consider opening a Penfed.org account. They are currently offering 3.99%, five year home equity loans at no cost. Your loan to value ratio needs to be less than 70% to use your tax assessment appraisal, else they will want you to pay for an appraisal. Think before you jump. You would be locking in to a five year loan.
i think you should pay off mortgage unless you come up a way to generate more than 5% from your extra money . Dont forget to open home equity line, they are cheap emergency money
My husband and I feel the same way. Our mortgage is also at 4.875%, but it seems crazy to want to keep the debt for the next 14 years (15 year mortgage originally). We also would like to pay it off early and be that much closer to financial freedom.
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