The Fed signalling lowering rates has been the talk of the financial news for the last few days.
https://www.theguardian.com/business/2023/dec/13/federal-interest-rates-us-inflation
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Paying off my mortgage
- Thread starter Donald
- Start date
https://www.theguardian.com/business/2023/dec/13/federal-interest-rates-us-inflation
A bird in the hand…
That said, have you thought about setting a trailing stop loss on it? And when/if it sells then the decision has been made for you. You just have to be at peace to accept whatever happens with the share price after it sells can’t be predicted.
That said, have you thought about setting a trailing stop loss on it? And when/if it sells then the decision has been made for you. You just have to be at peace to accept whatever happens with the share price after it sells can’t be predicted.
My friend put what he needed into a separate investment account. He had a nice low mortgage rate. He took the monthly payment from the investment account. When he was done paying of the house he still had about $200k in that investment account. He said if he had used it all to pay the mortgage originally he probably would not have re-invested that same amount. Other things would have been done with it. He uses it now for all his extra wants (vacation/toys etc.) He still has his 401k invested, his pension and social security cover all of his normal expenses. He has 5 kids to leave the rest to when he can't anymore.
He did say it was very nice getting the mortgage paid off but was glad he didn't do the lump sum every time he looks at the account.
He did say it was very nice getting the mortgage paid off but was glad he didn't do the lump sum every time he looks at the account.
4WD
$50 site donor 2025
Only one safe way to retire IMO - debt free …
4WD
$50 site donor 2025
Same - it’s enough to pay property taxes without a mortgage …
JTK
$100 Site Donor 2025
The market goes up, and the market goes down. If you have a 20 year time horizon you don't much care.
From Dec 2021 to September 2022 it was down 25%. It could have stayed there if not for "AI". Market could also double next year. No one knows.
This isn't a market question, its a personal finance question, which only you can answer.
From Dec 2021 to September 2022 it was down 25%. It could have stayed there if not for "AI". Market could also double next year. No one knows.
This isn't a market question, its a personal finance question, which only you can answer.
It's a good feeling not having a mortgage payment every month, in fact it's a great feeling. I agree with @SC Maintenance. Sometimes decisions like paying off a mortgage or paying all cash for a new car are often based on feeling comfortable, not how well the money you use might do. Come next year a lot of things can change, the market might continue higher, or tank. Follow your gut on this one.
I will add another thought. A fixed rate mortgage payment is a inflation hedge.
Yes, owning your property will mean its value will go up with inflation - maybe. However you can't sell your home to buy groceries.
If you have inflation then every month your mortgage payment becomes comparatively less. You can usually hedge cash to some degree against inflation during high inflation times - short term treasuries, I-bonds (although those are very limited), etc. No way to hedge a paid off house. It will inflate, so too will your taxes.
Yes, owning your property will mean its value will go up with inflation - maybe. However you can't sell your home to buy groceries.
If you have inflation then every month your mortgage payment becomes comparatively less. You can usually hedge cash to some degree against inflation during high inflation times - short term treasuries, I-bonds (although those are very limited), etc. No way to hedge a paid off house. It will inflate, so too will your taxes.
4WD
$50 site donor 2025
have to also pay city, county, school, etc, etc - a stack of them …
We don’t have income tax - but they’re gonna collect other ways …
4WD
$50 site donor 2025
Yep - and the odds of getting sick is going up rapidly with age …
We just lost a super talented 60 YO to cancer …
Like that my family has a home paid for …
(and my life insurance is very high) …
4WD
$50 site donor 2025
Lots register there for lower corporate tax - but the number of companies is high especially compared to population …
Sorry for your loss. Life can pitch some mean curve balls.
No two people have the same exact situation, so in this case I'll repeat it is best the OP does what makes him feel the most comfortable. Me, I don't like owing money, never did, never will. The few times I took a loan I paid them off early, with one exception our 2008 Liberty. I had at the time a 0% APR loan, so I financed the whole thing less the $500 deposit. At the time they only offered 0% for three years.
I understand that homeowners insurance is low where you live as well.
The FED controls ONE rate- overnight borrowing. Look at the 10 year Treasury over the last 2 months.
They control the short end directly.
They influence the long end indirectly with their balance sheet. There selling bonds which in theory should make longer rates higher.
From 2008 - 2022 they were buying bonds, which made the long end lower.
There all very blunt instruments either way.
Agree and even more so why gamble the stock market with borrowed money from your home is another way to look at it.
He has the means to pay it off so take those unrealized gains in the stock market and turn it into a realized gain by paying off the home you live in and owning real property.
There is nothing like the feeling of a paid off house even though you have money in other investments to pay it off.
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