Agree on all counts. For many years, my wife and I believed the financially optimal answer of Yes - keep the mortgage.
But as I approached 60, the emotionally optimal answer of paying it off early was agreed upon and it does feel good to not have a mortgage payment each month.
YES, absolutely! Even though we had enough in savings to pay it off through the years, my wife and I convinced ourselves that we were earning more my keeping our low interest rate mortgage (3%) and keeping our investments. As we approached 60, we decided to speed up our prepayments and pay the mortgage off. Have the mortgage paid off at 60 enabled me to move out of industry and in Not for Profit work with a lower salary, but satisfaction that I am investing in a worthy cause.
Additionally, it just felt good to have ZERO debt!
Having no mortgage to pay each month has been a great ride the past six years.
My wife and I agree that only our house mortgage was ok for borrowing. We would rather bite the bullet and pay cash for all other things.
Now the mortgage is also paid off because we paid multiple lump sums to be able to leave an industry job and work in the Not for Profit arena. Lower salary but lots of extra satisfaction.
We live P to P too, R Quinn, but have much in reserves. I love it when my wife tells me we generated a few hundred dollars to put in savings in a month after paying off all the bills.
Of course, every month we are still contributing a significant amount to our company's 401K, so I guess I'm cheating in saying we live P to P.
Assuming they have a job, be sure to invest in your company's 401K and be sure to contribute enough to get the full match. Invest it in Index 500 funds or similar. Increase the % every time you get a raise.
Obviously there are lots of other gems to impart, but this one is essential.
Find the house you like in the neighborhood you like with good schools and a good church. Buy one of the smaller houses in the neighborhood. Don't overextend on the mortgage. I agree with the other lengthy comments listed below, but most of those aren't my first thoughts when looking. Obviously all the details are very important, but not so if you don't pick a house you like.
Comments:
Agree on all counts. For many years, my wife and I believed the financially optimal answer of Yes - keep the mortgage. But as I approached 60, the emotionally optimal answer of paying it off early was agreed upon and it does feel good to not have a mortgage payment each month.
Post: Should you prepay a mortgage?
Link to comment from June 29, 2024
YES, absolutely! Even though we had enough in savings to pay it off through the years, my wife and I convinced ourselves that we were earning more my keeping our low interest rate mortgage (3%) and keeping our investments. As we approached 60, we decided to speed up our prepayments and pay the mortgage off. Have the mortgage paid off at 60 enabled me to move out of industry and in Not for Profit work with a lower salary, but satisfaction that I am investing in a worthy cause. Additionally, it just felt good to have ZERO debt! Having no mortgage to pay each month has been a great ride the past six years.
Post: Should you prepay a mortgage?
Link to comment from June 29, 2024
My wife and I agree that only our house mortgage was ok for borrowing. We would rather bite the bullet and pay cash for all other things. Now the mortgage is also paid off because we paid multiple lump sums to be able to leave an industry job and work in the Not for Profit arena. Lower salary but lots of extra satisfaction.
Post: When is it okay to go into debt?
Link to comment from June 29, 2024
We live P to P too, R Quinn, but have much in reserves. I love it when my wife tells me we generated a few hundred dollars to put in savings in a month after paying off all the bills. Of course, every month we are still contributing a significant amount to our company's 401K, so I guess I'm cheating in saying we live P to P.
Post: Paycheck to Paycheck?
Link to comment from June 29, 2024
Assuming they have a job, be sure to invest in your company's 401K and be sure to contribute enough to get the full match. Invest it in Index 500 funds or similar. Increase the % every time you get a raise. Obviously there are lots of other gems to impart, but this one is essential.
Post: What Financial/ Life advice would you give a 2024 college graduate?
Link to comment from June 29, 2024
simplify and have somewhere they can go for help when the time comes. Agree 100%.
Post: When to share estate plans and net worth with your adult children
Link to comment from June 29, 2024
My two son's financial security. I think / hope my wife and I are in good shape.
Post: What are your top financial worries?
Link to comment from April 15, 2023
Find the house you like in the neighborhood you like with good schools and a good church. Buy one of the smaller houses in the neighborhood. Don't overextend on the mortgage. I agree with the other lengthy comments listed below, but most of those aren't my first thoughts when looking. Obviously all the details are very important, but not so if you don't pick a house you like.
Post: What should you look for when buying a home?
Link to comment from April 15, 2023
Never
Post: When does it make sense to buy the extended warranty, if ever?
Link to comment from April 15, 2023
Stay the course
Post: What’s your favorite financial quote?
Link to comment from April 15, 2023