You know what else i like? When you find out exactly how much you owe, send a check, then they tell you that you owe more in interest because they didnt cash and process the check for 15 or 20 days.
I like this comment. The 'market portfolio' (probably the most accepted form of stock 'investing' versus 'gambling' out there) is still a bet: that GDP growth continues and monetary aggregates likewise continue to increase. Just a glorified form of hopeful trend following (ie 1982-2000).
i've met enough people who believe in debt-free living to determine they tend to be financially unsavy. they don't know how to safely invest debt that's 4% and make 6-8% from it. the savvy ones do know how, and so they won't pay off low-interest debt. as for me being clueless, i've invested my mortgage since its inception and have made MORE than the payoff balance, and it's safely socked away. so there is no way the bank can take my house because i can pay it off at my choosing. without know your financial details calculator2, i can say with 100% certainty that i'd rather be in my shoes than yours
My mortgage (of $684k) was with Citi. I paid it off and they said "congratulations" many times. Each time I called (to get tax documents, etc).
That method is no good. The premise is that borrowers finance a new property or refinance existing property using a HELOC and you direct deposit your entire paychecks into it. But mortgage interest is frontend loaded. Monthly expenses, other than mortgage payments, are funded by draws against the line of credit, Even if you don't wind up making additional principal payments in a month, you still capture some interest savings because your average balance is less than it would have been with a conventional loan but this was all back when interest rates were higher. This method was sold as a kind of a form of arbitrage but in order for you to be able to pay it off quickly, Every penny of your "discretionary income" is applied to loan paydown. All you got to do is just send extra principal payments. Ultimately it all about managing your money and living frugal so you can pay off your house faster. Just like any business, its all about cashflow.
Mortgage, lets say 5% vs Risk free 1.0% It is smarter to pay the 5% mortgage off which is a risk free 5% return vs a not risk free 6%
Congratulations on paying off the mortgage, What are you going to do with the problem of too much money? --