Should i pay off my mortgage with lump sum payments?

[SummerStriker]

Excellent point. People lose money on investments, frauds, etc. If you invest intelligently it won't happen but NOTHING is safer than paying off debt on your primary residence, which you can always re-leverage if you want.

Lastly, we are talking about roughly 100K of lump sums over 4 years at 1,5%. Safe investments yield what, 4% in the US? He'll end up with 3K more of taxable income, which isn t worth the headache.

My vote is to go for the lump sums.

4% real on average, compared to 1% real for RE, but that's the hundred year average. Maybe we get a president who guts the stock market, or a local government becomes a sanctuary city and puts a halfway house next door to you, or the communists make you rent a room for free, or the stock market goes to zero, or maybe the stock market is flat for 30 years because it is so overvalued but anti-immigration laws makes new housing construction unaffordable so existing home owners outperform the stock market by 5© a year.

Who knows. The future could be anything.

 

[Ballsaque]

I would consult with a financial advisor instead of taking advice from a bunch of knuckleheads on an MMA forum.

Sounds like a horrendous idea

 

[Blayt7hh]

At 1.7 no. You should pay the minimum and invest whatever you have leftover. Come April 2026 that probably changes though

 

[YoungBoyd]

There is no way in hell I'd be paying extra at 1.7% lol

This lol.

 

[YoungBoyd]

Remember to put some money aside to enjoy life now. Life is short.Your children dont need everything handed to them. You can always make more money if needed, but you cant turn back time. Thats my best advice.

 

[subtlySteve]

Sounds like a horrendous idea

I concur, taking advice from a bunch of knuckleheads on an MMA forum is in fact a horrendous idea.

 

[Rob Battisti]

Bunch of financial illiterates ITT.


1.7%? That’s basically free money when you realize inflation is multiple times that in actuality.

The only reason to pay down debt is if the interest rate is higher than the rate at which the money is debasing.

You can literally spit and find basic high yield savings accounts for 5%. Take this “lump sum” of cash and earn on it. Don’t waste it by paying off free money.

 

[KBE6EKCTAH_CCP]

4% real on average, compared to 1% real for RE, but that's the hundred year average. Maybe we get a president who guts the stock market, or a local government becomes a sanctuary city and puts a halfway house next door to you, or the communists make you rent a room for free, or the stock market goes to zero, or maybe the stock market is flat for 30 years because it is so overvalued but anti-immigration laws makes new housing construction unaffordable so existing home owners outperform the stock market by 5© a year.

Who knows. The future could be anything.

Well that s highly unlikely on house prices. And i am not suggesting the stock market as a safe investment. Money deposits is what i meant.

 

[DrederickH8m]

Go to the casino put your house and savings on black. You’ll double up and you’ll be free from debt and you can double down again if you feel you need more money.

 

[SummerStriker]

New video explains why investors should expect stock returns closer to 5% or lower, rather than 10%.