I didn't have the time to read though the entire thread (and posted previous thread link) -- apologies if these points have already been brought up.
Why pay off, or not pay off your home?
On a 30-year loan, in year 1, about 90% of your payment is interest and 10% principal. So if you're young and in high tax bracket, you get lots of tax write deductions from the mortgage payment.
But as the years roll by, less $ is paid to interest and more to principal, reducing your tax advantage. So if you're looking for a tax deduction advantage, it's much less later on.
For most people, I'd suggest paying off their homes early via extra payment every year method (reduce 30 year loan to 22?). Most people aren't financially disciplined and it's better to have them pay off the roof over their heads than to play with the $.
But if you're savvy with investments and willing to take risks, flipping homes and condos during RE up-cycle can make you a lot of $$. During the previous RE cycle (1998-2005) I refinanced my home, took out some $$ and bought another condo for investment, then sold it 4 years later. The $ I made from that sale is more than enough to pay off my loan on my primary residence. But I also accepted some risks and the rental property had negative cash flow for 4 years.
Why pay off, or not pay off your home?
On a 30-year loan, in year 1, about 90% of your payment is interest and 10% principal. So if you're young and in high tax bracket, you get lots of tax write deductions from the mortgage payment.
But as the years roll by, less $ is paid to interest and more to principal, reducing your tax advantage. So if you're looking for a tax deduction advantage, it's much less later on.
For most people, I'd suggest paying off their homes early via extra payment every year method (reduce 30 year loan to 22?). Most people aren't financially disciplined and it's better to have them pay off the roof over their heads than to play with the $.
But if you're savvy with investments and willing to take risks, flipping homes and condos during RE up-cycle can make you a lot of $$. During the previous RE cycle (1998-2005) I refinanced my home, took out some $$ and bought another condo for investment, then sold it 4 years later. The $ I made from that sale is more than enough to pay off my loan on my primary residence. But I also accepted some risks and the rental property had negative cash flow for 4 years.