I have a loan in my first mortgage. Got the loan young and was just happy to get it. It was a 30 year term I'm 20 years into it. It was as 7.% I would have re financed it for a lower rate but my credit went into toilet after all the medical bills from the wreck where the guy ran a red light and killed my son. I was mad at the banks decided not to worry about fixing my credit. If I don't have cash I don't need it. Did that for 10 years.

Looked int refinancing last year since I took a year and rebuilt my credit back up just under 800. I wanted to cut the remaining 10 years to 5. Well they didn't want to go under 15 years adding time not reducing it. They offered other loan options but the fees are up most of the interest savings and it was not worth th hassle. I had the Cas to pay it off 2 time and did not and regret it. Currently my inlawa are renting it and paying the payment. I don't make any money but none is going out. I did put a few hundred a month extra on principle when th loan was. New before it was sold and I could pay at the local bank.
I'm getting ready to start adding extra to it again and when it's paid off it still be an income producing asset with value I can sale after they pass.

I bought th farm cash no regrets. Sure with th low rates and the market preforming like it did the last 10 years I would have been ahead way ahead to hav got a loan and let that cash grow at a much higher rare than the interest I would pay. But my credit was not fixed when I bought the farm so I paid cash.

There is freedom and security in both having Cash making money for you and owning your place free and clear. Both would be nice to have but I could only have one. I chose paying thing off and do not regret it.

I refinanced last year into a 10-year fixed rate of 1.875%. We pay about 50% more than our scheduled payment every month. Plan to move again in about two years. Sure wish I could take this loan with me. Maybe I can rent the current home to keep the low rate. It is the only debt we carry.

Pay it off. Interest is low now but why pay the extra money if you don't have to.

Hear is what I did I payed it of fast then to this day I make the same monthly payment to a separate account
I do the same with trucks iget the monthly payment pay it of at dealership and make that payment to my self to for when I need a new one
It's like this u make payments and get used to it so y not keep making them to yourself that is how I do it and still put money in savings monthly

If your not coming back just sell it before housing crash But do what’s best for you !

I am 56 and have not had a house payment for 10 years. Pay it off if you can. You can ride out a pretty bad storm if everything is paid.
But you have to maintain your credit rating. Lots of things based off your CR such as your insurance.

Exactly Cbat . That's why I suggested a HELOC (home equity line of credit. It shows up on your credit report but you aren't paying anything if you don't use it . Some banks charge 20 bucks a year to keep it active depending on what you have in other accounts.

If you don't like debt, pay it off or save until you have the cash. Investing over the long haul has been a proven way to gain assets. For those that lost their home in 2008 those with the least cash in them came out the best as they could file and start over in life. The system has been created to figure out how to manage money and cash is becoming less a part of that every decade.

Bryce

We paid our home off shortly before the "pandemic." And I lived in a state that didn't go jackboot and force people to stay home...

But for folks still having to make payments and living in a dictatorship... It must have been a nightmare.

Point is, with the current state of affairs it might be a good idea to own your place free and clear.

Mike

Thanks to all of you for the advice. I am going to pay it off, then save save save.

High fuel wasn't the trigger in 08.


How's that for an investment? Not all that good unless you didn't pay any RE taxes, insurance and upkeep. Looking at it from a strictly investment standpoint, you would have been far better off in an IRA in an IRA or incoming producing framland. From a strictly investment viewpoint BBW is correct. It's math pure and simple. No one can guarantee 4 percent but here is something to think about. If you have a loan for 4 percent today and inflation is 8 percent you are making 4 percent profit on that loan as long as inflation is 8 percent. I know it's hard to grasp yet simple math.

harttoflow, what to do is a personal decision. There is something to be said about owning your home free and clear and the sense of stability that comes with it. My recommendation is to take into consideration several factors and do what you think is best for your tolerance to risk.

One thing that was mentioned by Dana is if you pay it off and then have to borrow to build the shop, pay for the shop in cash and keep making the home payments. As he said your old loan will be at a lower interest than the new one will be.

Good luck to you.

I think that is a smart move.

Good decision, you wont be sorry

I just turned 40 Wednesday and I have 5 years left on mortgage, and I can't wait to pay it off. I bought a second home in Ohio 8 years ago with cash that I could have put on the loan but don't regret it. I am self employed and don't have a retirement so my wife has been putting 20% of her pay into a 401k for awhile. If I can just keep her from divorcing me later in life hopefully I should be okay. I say pay it off

Its been a while since I made this post. We payed off our home a while back, and have since decided to sell, and buy a home on more property. We have moved since paying off our home, and will have it on the market in spring. I’d list it sooner, but we need to do some updates before putting it up for sale.
Now we have a small farm, lake, hunting and trapping ground, and two neighbors that are on large properties.
No more bs from hoa’s for us!

I paid mine off in 10 years a 250k note my cpa said I would lose the deduction of interest and my quote to him is 7k interest gets me an extra 1500 bucks back on my tax refund all I see is a 5500 dollar deficit he didn't disagree , do what suits yourself I always had the philosophy it's not what you owe it's what you own that counts just my 2 cents ...Jon

Property taxes have nothing to do with paying off a mortgage . Property taxes are just a rip off and the only parcel of ground you ever own is your cemetery plot

We paid ours off about 10 years early My only regret is that I did not make a better attempt to pay it off even sooner .Job lay offs due to the Too Big to Fail Bank ;Crisis How about the irony of that . And health issue that impacted my ability to work If my mortgage had not been paid before those 2 problems happened I am not certain we would have been able to keep up the payments .If your everyday expenses are much more that your income it does not take long for a nice savings account which took years to save quickly disappears just by going to the gas station and grocery store . .Having my home mortgage paid was a game changer for me.

Yes sir a piece of mind is worth a lot of money

Is it easier for a home without a lien to be stolen?