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Old 01-19-2019, 10:57 PM   #81
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How does one "earn a return on my money" if you've used it all to payoff the mortgage? **
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Old 01-20-2019, 11:04 AM   #82
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How does one "earn a return on my money" if you've used it all to payoff the mortgage? **
No one said anything about using it all to payoff the mortgage. The Op talked about having other investments, as I had when I paid off my mortgage.
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Old 01-20-2019, 11:26 AM   #83
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Whatever, but it is indisutable that any money used to make discretionary principal payments is no longer available to earn a return.
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Old 01-20-2019, 12:03 PM   #84
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Whatever, but it is indispensable that any money used to make discretionary principal payments is no longer available to earn a return.
Then you missed my point, which is that you are earning a return on that money by saving the interest payments that would otherwise be made. And that it is unknown what the return (or loss) on the money would be if it were instead invested in stocks.
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Old 01-20-2019, 12:31 PM   #85
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I didn't miss your point... it is so obvious it is hardly worth making a point if it. While it is true that what one would earn on investments, be it stocks or a mix of stock and fixed income is unknown, what is known is that for periods of time they have outearned mortgage interest more often than not.
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Old 01-20-2019, 01:02 PM   #86
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Then you missed my point, which is that you are earning a return on that money by saving the interest payments that would otherwise be made. And that it is unknown what the return (or loss) on the money would be if it were instead invested in stocks.
I agree. I think of interest as an expense that we pay above the value of our house. Write off or not, gain or loss, it is an expense. A stock or stock fund price is the amount you pay for it at the time of purchase. Add 2.5%, 3% whatever the interest is, it is an expense above and beyond the price you bought the house/stock for. The value of the house/stock can go up or down or sideways, the interest/expense is there regardless. That's why low cost, low expense stock/stock funds are valuable to me.

I think of my house as a stock I will not sell and get much value just living in it. If the actual value of my house plummets, ok, I can live with that because I am living in my house and not selling it, therefore have no payments on it and no one can kick me out of it.
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Old 02-13-2019, 05:23 PM   #87
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So to all the people that love their mortgage and want to keep it around.... do you borrow from the equity periodically to invest in the stock market? If the value goes up, or over time the debt goes down, do you harvest that equity to invest into the stock market?
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Old 02-13-2019, 05:35 PM   #88
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So to all the people that love their mortgage and want to keep it around.... do you borrow from the equity periodically to invest in the stock market? If the value goes up, or over time the debt goes down, do you harvest that equity to invest into the stock market?
If I could do it with a few mouse clicks, and conditions were right, I would. But it is typically more involved, and there are costs with a refi.

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Old 03-31-2019, 06:44 PM   #89
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Ty for all the encouragement. Home is paid off and joined the double comma club. So thankful, and excited about what is to come!
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Old 03-31-2019, 07:12 PM   #90
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Congrats on the house, and joining the 'double comma club'.
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Old 04-03-2019, 04:13 PM   #91
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Way to go Penny6! Continue to keep us posted.
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