Does "being a terrible investment" factor into strategies for paying off debt? I purchased my home in 2006 for $400k and it's fallen over $100k in value. My loan has $250k and 18 years left at 3.75%. While I don't hate living here, I do feel trapped; the HOA fees keep going up, supply in the area keeps increasing, and I have no faith it will recover in value. I do think it's near the bottom now, but who knows, especially at higher interest rates.
Thanks to a super lucky windfall this year, I'm now sitting on $400k cash. I know I can put that into the market and likely make more than 3.75%, but I don't believe doing that all at once is a recommended strategy (?). Plus, you know, we're deep into a bull market run (..or are we!).
Anyone have thoughts on paying off all or some of the mortgage? At 3.75% and stagnant value, I don't see how it makes sense. But a small part of me wishes it did because that'd be easier than finding somewhere else to put the cash (which I've already sat on for 7 months), and having no/reduced mortgage is enticing. Seems hard to justify though.
Maybe I'm missing something? Any insight would be super appreciated!
Submitted August 27, 2018 at 10:08AM by dustyjams https://ift.tt/2PHS3i3
