Originally Posted by Keim
Has anyone EVER heard anyone say they regretted paying off their mortgage?
I didn't pay off my mortgage - or rather, I choose to get one when I had the cash available to purchase outright. If I had not taken the mortgage, it would have been one of the largest financial misteps in my life. My anecdote:
In Nov. of 2009 I bought a "new", never occupied short sale in Tucson, AZ for $162K. It was/is a second home intended as a retirement home for my winters. I had the cash sitting idle at the time to pay cash. Instead, I elected to take a 2.95% 30 year mortgage and invest the cash in a portfolio of 60% SCHB (Schwab total US market) and 40% PIMIX (Pimco aggressive short term bond fund). I set up a separate account to hold the money and have made no deposits or withdrawals in the interim. The account balance went from $162K to $470K today. The house value is $359K on zillow today verse the original $162K purchase. I've paid about $40K in interest on the mortgage.
You can't buy the past, but it is far from certain that avoiding/paying off a mortgage is always wise.