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<blockquote data-quote="59 Dano" data-source="post: 5644592" data-attributes="member: 23516"><p>I wouldn't be worse off at all. </p><p></p><p>Take a 5 year period, for example.</p><p></p><p>*Don't pay off the house</p><p>$120k at 5.5% gives me just under $157k at the end, minus whatever I paid in interest on my mortgage during that time. </p><p></p><p>*Pay off the house</p><p>I invest $2400 a month in something that generates an average annual gain of no less than 8%, giving me at least $176k at the end. </p><p></p><p>It immediately increases my net worth, gives me a higher yield, more liquidity, more money in the end, inflation is less of a concern, more options for my money, a stronger and more effective investing focus, I can adjust how my money is invested as needed, and I can afford to be more aggressive because there's absolutely no risk to my home and I have no mortgage payment. </p><p></p><p></p><p>You are correct, it is very simple. Those of us who took these kinds of courses in college understand it very well.</p><p></p><p>If you want to eke out something from a 2% rate differential and simultaneously make house payments, go for it. I'd rather have no house payment and get some real bang for my buck.</p></blockquote><p></p>
[QUOTE="59 Dano, post: 5644592, member: 23516"] I wouldn't be worse off at all. Take a 5 year period, for example. *Don't pay off the house $120k at 5.5% gives me just under $157k at the end, minus whatever I paid in interest on my mortgage during that time. *Pay off the house I invest $2400 a month in something that generates an average annual gain of no less than 8%, giving me at least $176k at the end. It immediately increases my net worth, gives me a higher yield, more liquidity, more money in the end, inflation is less of a concern, more options for my money, a stronger and more effective investing focus, I can adjust how my money is invested as needed, and I can afford to be more aggressive because there's absolutely no risk to my home and I have no mortgage payment. You are correct, it is very simple. Those of us who took these kinds of courses in college understand it very well. If you want to eke out something from a 2% rate differential and simultaneously make house payments, go for it. I'd rather have no house payment and get some real bang for my buck. [/QUOTE]
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