I bought a house last year, put as little down as possible (actually got some of my earnest money refunded), got a 3% interest rate. Friends said "put a little bit extra towards your mortgage each month- you'll save so much interest!" Ii also see a lot of people on here and on budget podcasts talking about paying off a mortgage early. I mean, I get the cash flow perspective. I could go on a nice vacation each year for what I pay in interest. But, from a sheer "let's maximize the amount of money I have in my entire life," isn't that better in the stock market? I mean, doesn't compounding interest work both ways? Not to mention I'm in a position where I might not be able to buy my next car with cash- wouldn't I be better off saving that money to avoid a car loan? I get that, over 30 years, even 3% interest compounds to be a lot, but wouldn't I be better off padding my retirement? The only thing I can think of is the 3% is guaranteed, and it's possible the stock market won't perform as well over the next 30 years as the last 30... What do you all think- are there advantages to paying off a mortgage early that I'm missing, or am I thinking about it wrong somehow?
Submitted May 08, 2022 at 11:51PM by Host_South https://ift.tt/MobTHYU
