What was the biggest motivator for paying off your mortgage early?

[corn18]

This doesn't make sense to me.
Are you assuming that your house is appreciating at same rate of inflation, so what you give away to the bank in interest you get back in home value increase?

No. If you borrow $100,000 @ 2% and inflation is 2%, the Net Present Value (NPV) of the money you owe is $100,000.

[jenn_jenn]

Assuming you were debt free, if you wouldn't borrow X dollars at Y percent interest to invest in the market (counting on a return that would outpace your interest rate), it makes no logical sense to retain a mortgage worth X dollars (at Y percent interest) any longer than you need to.

Great perspective. I think the answer to our situation is complicated because I don’t know that we wouldn’t. Right now, we essentially have a negative real interest rate.

We’re still figuring out our goals on this one. I know mathematically it doesn’t make sense, I just like the tangibleness of it. It’s lazy of me in my thinking.

I have a feeling that we’ll do something along the lines of what Like2Plan suggested and invest the money until we have enough to just pay off the mortgages. At the same time, we’ll put a little extra towards the mortgages that’s pretty low stakes (like one extra mortgage payment a year) to shave off a couple years just because I want to.

Thanks everyone for the input. Appreciate it.

[Xesed]

Hi all, I have faced this situation, and I will tell you that paying off the mortgage is the best way out of it.

[ryan_themoneyguy]

Paying off your mortgage could open up doors to invest in other property down the road. I guess this would be in line with taking "riskier investments" once you have that safety net. It could also allow you to rent the property and pocket the rent entirely as income in the future.

[DonaldVeelage]

I find it true. It’s always better to own something because you don’t have to pay for it anymore and can circulate these funds in a new business plan or something, not just give them away

[LivingAlmostLarge]

No. If you borrow $100,000 @ 2% and inflation is 2%, the Net Present Value (NPV) of the money you owe is $100,000.

Except right now inflation is high and mortgage locked is a hedge against it

[Charlejack]

Damn, it's certainly getting rid of the burden.

[myrdale]

Damn, it's certainly getting rid of the burden.

Yes.

[Thrif-t]

Had 3 kids going to college 2 years apart. Wanted house paid before 1st started but we didn't actually get it paid off till 2nd kid started school.

[LivingAlmostLarge]

I have no motivation to pay off the mortgage. It seems impossible when I look at it.

[Snicks]

My motivator was that i HATE HATE HATE being in debt. I hate it. I like to own what I own. Doesn't mean I dont' use debt but I hate it.

[rennigade]

No motivation here. We have a zero percent loan. 11 years to go.

[disneysteve]

No motivation here. We have a zero percent loan. 11 years to go.

You have a 0% mortgage? How did that happen?

[rennigade]

You have a 0% mortgage? How did that happen?

We purchased it from my in laws. Gave a large down payment and agreed to pay the rest back over 15 years at 0%. We did dump another $100k into the inside and renovated every room. We could write a check and pay it off but it doesnt make any sense.

We calculated that it will save us around $40k in interest over the 15 years which is really nice. We understand that most people are not that fortunate.

[disneysteve]

We purchased it from my in laws. Gave a large down payment and agreed to pay the rest back over 15 years at 0%.

Nice. Of course there are tax implications to that but only if someone tells the IRS.