I like the 'no mortgage' option for myself...however I do see and am torn Torn TORN about the financial loss that I'd have by not having that money out there invested.
For example, right now we'd love to payoff our mortgage...the thought gives me all kinds of warm fuzzies. However sleepless of late with thoughts of a housing bubble about to burst and the thought of refinancing and borrowing against it at today's inflated housing prices - my house is appraised for about 3 times what I paid for it.
So, I'm thinking...yeah, I'd like to get that money OUT OF THE HOUSE before the bubble pops and I'm stuck with a house (I like but think I'll move from upon retiring in about 4-6 years) that may no longer be worth 3X +/- a few dollars!! It's a quandry alright.
I'd like to get that money out and run it to some safe investment that would help us all during retirement. Just not sure! What investment (keep up with AND exceed inflation) is out there that would alllow us the $$'s to make that big of a payment even on a 30 year note, because it isn't here in our budgeting means from traditional paycheck.... Need to run numbers. Even with the calculations there would be The Hubster to convince on the viability of such a plan!
Also on the con side for me cashing out is the nice secure feeling of entering retirement w/no house payment that would be voided. Although we are thinking of moving - too much yard (2.5 acres) to keep up with in retirement and I'm not so sure that we would reinvest all the proceeds of this sale into another house!! AUGGHHHH! AND, most likely what we'll be moving to even though smaller will cost us almost the same amount if not more to buy!
I feel like I'm missing an opportunity here by not cashing out...what thinkest thou, o wise ones? Anyone else here thinking this way? Borrowing to invest still sounds risky but under the right circumstances very inticing!!
Ya'lls thoughts???
edited to add this relevent article:
Mortgage or No Mortgage?
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Re: Home loan or No?
