Well, put it this way, when we had a high interest rate (8%+) we were motivated to pay it down. We also had considerably more income though.
I am considerably less motivated now that our interest rate is below 5%, AND our income is considerably less.
I was less motivated when we had a lot of equity for a time. Agreed there.
Most people don't seem to understand how inflation works. I am young in my career and we are living on one income. We never neglected our retirement, but in our 20s we only put away 10% because so much of our income went into our home. The reason being so we could drop to one income and have a low mortgage, around age 25. WE accomplished that.
As I grow in my career and inflation (& lower interest rates) eat at the mortgage we are making retirement a priority. We are putting away 15% right now with a goal of 25% to max out our ROTHs & employer retirement plans. (I am 31).
I expect we will revisit mortgage pre-payments in our 40s. Income should be higher and inflation will work its magic. A second income (or any large windfall) would be devoted to paying off the mortgage fast.
I expect to have a paid off home WELL before retirement and ample retirement savings as well. I probably won't spend any time in my 30s prepaying a dime. Particularly with our low interest rate right now.
I know our parents were excited to pay off their mortgages in their mid-50s, but what was once a daunting payment (particularly the high interest rates and prices my parents bought at in their early 30s, over 50% of their income to mortgage payments) was just pennies to them at the point they paid it off (about age 53).
I've always been extremely motivated to have a paid for house. But knowing the best way to go about it takes more than just putting all your assets and resources to ONE thing. That doesn't make any sense to me.
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