Aldeer.com Forums Alabama Deer Talk Aldeer General Forum Paying Mortgage Off

one thing i will add is that paying off a house feels great initially but after a while it doesn't feel so great, it's just normal. on the other hand oweing money never feels great and I can't stand to owe. but yeah right now with your interest rate it doesn't make financial sense to pay it off.

I don’t like a note. Just me. I make some stupid decisions and I understand.
In saying that. I’m more of a put money into something I can stand on so that’s where most of mine is. It’s not
Invested probably like it should be. But got land and buildings that will completely good compared to a 401k.

While I understand that the math says 10% in 401k is better than 3.xx in house notes in my math it’s a lot easier to save/invest when you’re totally debt free. While I have never needed Dave Ramsey’s advice to get me financially healthy I do remember him saying something similar to what I saying. I would throw as much money at the debt and still maintain a comfortable reserve. That’s was why we did a big principle payment every quarter. Then you attack the 401k he still has around 20 years before needing it

Never heard or thought of it that way .........

401k's will only let you borrow for 5 years.

Y’all beat me to it.

That 401k is your feedstock for growth in the coming decades. Run a growth calculator with a depleted fund versus keeping what you have and adding to it. On the other hand that fixed mortgage is going to feel cheaper over time as your wages inflate. While the pressure is high now, it will feel like less pressure in the future.

Good luck with it. Hopefully you can find some side gigs/additional trades to add to your existing income stream to fill in the gaps for weather.

We've all heard of "the miracle of compounding interest" , the earlier you start the bigger the miracle.

In 20 years you could easily have 300 to 400 thousand if you left alone in a good growth fund. Thats without any more contributions. I wouldnt touch it. Maybe a small loan like others have said..

they are due in full if you have a career change.

3.62 and $69 a month for flood ---- You can make that up in the stock market ---- You're worried about smaller things, go after the larger money.

True, but there instances where borrowing from your 401k is a smart move.

We borrowed $25k to buy our 10 acres of mountain view property and then turned around and borrowed another $25k to buy lumber and pay contractors to frame our house. Both of those were paid off in 5 years. We ended up spending $65k over 3 years building that place ourselves. Now it's worth over $400k. It also helped us to become debt free. There's no way that $50k would have earned $400k in that short of a period of time had it just been left in the 401k to grow.

Yup, any extra should be marked as "Payment toward Principal", not just an extra payment.

Standard 30 year mortgage pays off in about 17 years if you send the next month's principal with this month's payment and mark it as that.

What if something happens and you become disabled. That 401K might really be needed then. I would not remove it, for security for family.

Terrible idea based on an irrational fear of the market crashing. It will crash again but it always comes back.

Lots of folks would kill to have a 3.6% mortgage and only owe 106K. You can skip eating out twice a month and cover the flood insurance fee.

Leave the 401K alone, you’ll want to eat after stop working.

This is a VERY important detail. Do not overlook.

I already said this earlier, but I keep coming back to if you have unplanned spare time due to weather and erratic work, it would be great to find a 2nd trade like plumbing or HVAC to start learning with a colleague or someone who needs help. You 1) could put this money to the side in another account to help soften the slow times and 2) eventually get a solid 2nd income stream as you have interest and time. Start knocking back that mortgage in another way and provide a stream to 401k when things are rosy, and when they stink (heat pump goes out, truck wears out) you have a way to handle it.

I think that is what some call tripping over dollars to get pennies.

Keep that loan on your home @ an interest rate you will never see again. When you pull $$$ from 401k at your aga, you are assessed a 10% penalty, on top of the taxes owed for taking it as income. You earn more $$$ in interest, than your mortgage interest rate. Pay extra on mortgage every month and let 401k build.

This is the reason for my post inquiring about the Amortization Schedule.

Time in the market beats trying to time the market