Yes, You Should Pay Off That 3% Home Mortgage
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to;dr
However I’m probably not taking financial advice from somebody who kicks off describing his experiences playing poker in Vegas
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The question can be 'do we pay off the mortgage, or do we borrow money for other things?'
We've kept a small mortgage so that we'll have money to pay for upgrading kitchens etc, rather than having to borrow at a higher rate.
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Trump’s tax laws did away with the mortgage tax advantage for most of us and that did change the calculation. But if one is not averse to investment risk, it remains a good financial decision to invest rather than pay down a low interest mortgage. Whatever math the author did to convince people that paying off their house would allow them to retire, was nonsense. If you can retire after paying off your house, then you can retire before paying it off, as long as you have faith in the stock market. If you’re in the business of eliminating risk, sure, pay off the house. But as the great Stockton Rush says, if you don’t want to take risks, don’t get out of bed.
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Trump’s tax laws did away with the mortgage tax advantage for most of us and that did change the calculation. But if one is not averse to investment risk, it remains a good financial decision to invest rather than pay down a low interest mortgage. Whatever math the author did to convince people that paying off their house would allow them to retire, was nonsense. If you can retire after paying off your house, then you can retire before paying it off, as long as you have faith in the stock market. If you’re in the business of eliminating risk, sure, pay off the house. But as the great Stockton Rush says, if you don’t want to take risks, don’t get out of bed.
