I have been trying to figure out the best way for us to take a $200K windfall and invest/grow/preserve it for long term.
We refinanced mortgage at beginning of the year to a 2.625% 30 year mortgage; loan balance is 253k now and property value is 525-550k in current market. I have had several people, friends and family members, tell me I should basically wipe out my mortgage so I never have to deal with it again, but that move seems to make the least amount of sense to me. Others are telling me if I don't want to pay it off, I should pay it more aggressively to get rid of the loan in 10-ish years. Realistically I only plan to stay in the home another 12-14 years; whenever it sells the loan will get paid off is my line of thought, and in that time frame the money invested will do a hell of a lot better than 2.625% returns compounded.
I watched this that backed up my line of thinking https://www.youtube.com/watch?v=36BN42mat10 that market gains and inflation will make paying the house off faster a losing proposition because I can grow the investments more.
Paying something ahead of time and getting lower returns doesn't provide me "peace of mind"; I can't do mental gymnastics like that. The debt doesn't keep me up at night.
Is there a practical situation, one where the dollar amounts come out higher in the end, to paying the house off sooner and slowing down or pausing investing?
This is also something I diverge from someone like Dave Ramsey on; I actually don't see the benefit to 100% owning the home at this point and he never fully illustrates why that is the case. I disagree with some of his teachings (which, according to him makes me an idiot I guess). I view the mortgage as good debt, not bad debt, and something that is working actively for me instead of against me. HOWEVER, I am aware that all of us have blindspots and things we are not aware of or have not considered.
Can anyone help me to understand the case to pay the mortgage faster/sooner?
Submitted November 14, 2021 at 08:31AM by SnowShoe86 https://ift.tt/3kAwnpa
