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behaviorkelton

mortgage payoff: let's make it a sticky!

behaviorkelton
16 years ago

I'm still fascinated with this topic. Especially as I am only a few months away from having the savings to just pay it off.

I wish we could leave the common topics...like this one...as a "sticky"... meaning, it always stays near the top.

Just a re-cap:

1. I no longer get to deduct my mortgage interest because I'm not meeting the minimum. (My interest is 6.12, but I don't owe enough). So I don't have that advantage for just keeping the mortgage debt.

2. Once paid off, I would double my contribution to my 403b retirement.

Question: It has been said that it is better to not pay-it-off and, instead, let the money work for you. But by increasing 401k contribution, does this somewhat resolve that problem? (i.e. I'm using my former-mortgage payments to fill an investment account...and am able to do it tax free!).

Further: More and more, I'm getting the feeling that I don't have the stomach to invest with my free money in anything other than very, very safe accounts... paying 5% or so these days. So I can't really make the claim that I am willing to invest in stocks as an alternative to the mortgage payoff.

On the other hand, I can invest like a maverick in my 403b... for some reason, I don't worry at all about the ups and downs in my retirement account!

So, against the advice of the financial brainiacs in this forum, I have thought of yet another justification for paying off the mortgage early!

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