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Old 08-17-2007, 06:31 AM   #61
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Originally Posted by teachme View Post
We are about to close on the first step of our dream by buying <20 acres and we can't wait to get out there but now reading this I'm even more motivated to pay it off sooner.
Do the math first. Most of these decisions are based on the emotional 'Whew, I paid it off, don't have that debt hanging over my head' feeling, but they ignore the fact that you don't have the money anymore either. It's locked up in your house equity, and less liquid.

Is that always a good thing? I'm not so sure.

It may still be good to pay it off, just don't jump to the conclusion that it is always better, or that it is much better.


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should I pay off the mortage
Old 08-17-2007, 06:55 AM   #62
Dryer sheet wannabe
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Location: florida Keys
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should I pay off the mortage

I have the funds, $238,000 to pay off my 30 year fix @ 5.5%. I can afford the payment. Should I pay it off anyway? it would not make any differents in my standard of living to do so.

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Old 08-17-2007, 07:05 AM   #63
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Bill, there are two polar views on this question here. It depends totally on your own situation and debt comfort level. For us, it was important to pay it off, knowing that we could max all our retirement accounts at the same time. But I certainly know many folks perfectly happy to keep the mortgage and allocate their investments to reflect the risk. Me, I sleep in my bond portfolio equivalent!
“One day your life will flash before your eyes. Make sure it's worth watching.”
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Old 08-17-2007, 07:23 AM   #64
Dryer sheet wannabe
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I hear ya, go girl.....
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Old 08-17-2007, 07:47 AM   #65
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Thank you for the response and although I appreciate your view on the math life isn't confined to the cells of a spreadsheet, it is much more dynamic and unpredictable.

My wife, although a wonderful woman and working hard at correcting her financial shortcomings, is not the best with money management. Due to the fact that I'm the sole income producer and do not know the day of my departure from this planet it makes more sense for me to secure our primary residence by paying it off.
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Old 08-17-2007, 08:00 AM   #66
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In times like this (market down 10%), I am glad I am paying down my 6.5% mortgage.

I learned my lesson(a bunch of lessons) a few years ago, money I had invested went poof - gone forever. Where as it could have been my mortgage that went poof.

I am still maxing out all my retirement accounts, but I am appling the extra to my mortgage instead of a taxable account. I am at 42% loan to value and plan on having it paid off at ER.

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