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

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    #16
    Originally posted by Fishindude77 View Post

    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.

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      #17
      Originally posted by AJSimon View Post
      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.

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        #18
        Hi all, I have faced this situation, and I will tell you that paying off the mortgage is the best way out of it.

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