Comments on: Is Early Mortgage Payoff Wise?

By: SpendIt

SpendIt — Wed, 20 May 2009 14:22:21 +0000

Thanks Miranda! If I could switch to 15 years and only pay $100 more a month, that would definitely be worth it!

By: SpendIt

SpendIt — Wed, 20 May 2009 14:20:25 +0000

Thanks Michael, appreciate your analysis — and enjoyed your detailed post on the topic at:
Tax Myth: Keep Your Mortgage, Invest the Tax Savings
Yes, it’s item (4) that gets me — after doing everything else I’m supposed to, it seems like I don’t have enough left over to both have a life and pay off my mortgage early. Maybe in the future that will change.

By: Michael Harr @ Wealth...Uncomplicated

Michael Harr @ Wealth...Uncomplicated — Wed, 20 May 2009 13:54:57 +0000

Paying off your mortgage early is the best route from a net return and risk standpoint as I’ve demonstrated in the past. However, it’s only the best route if (1) you have no other debt, (2) have a solid emergency fund, (3) are maxing out tax favored savings opportunities like 401k, Roth, etc., and (4) have no desire to use that money now for quality of life rather than later. If all four of those criteria aren’t met, then keeping the minimum payment on the mortgage is just fine. Besides, who wouldn’t want to spend more time with the wife and kids…I know mine are a lot of fun:)

By: Miranda

Miranda — Wed, 20 May 2009 12:15:21 +0000

Actually, with the low interest rates, we could refinance to a 15 year mortgage and only pay $100 more a month. It’s a little different approach to paying off the mortgage early. It would help us build equity faster, save tens of thousands of dollars in interest, and not interfere with our current budget, investing plans or anything else in our finances. We’re going to see what we can do.