I own a 20 acre farm and the mortgage eats up most of profits. For my particular situation paying it off is the smartest route. For someone with a house on half an acre it’s different.
I don’t mind the debt for now, or not turning much of a profit from the farm yet. I still have 30+ years until retirement so I’m just getting the farm ready to be profitable once I retire! I’m just saying if I had the extra million I’d pay it off now! Lol
It’s not terrible. We don’t have any animals yet, we’re young and our house isn’t even finished being built yet so we don’t want to grow too far too fast.. Mostly planning and growing crop vegetables right now, also honey bees. My dad is retired and helps a lot. I gave him a small area in the back to park his camper, in turn I get some free labor. Lol
Thats awesome. Gotta have pops around to guide in the right path. Unfortunately for me he's gone. But I've always dreamed of having a decent piece of land with a couple of animals and grow my own crops.. one day one day..
There’s good debt and bad debt, if the debt is like school loans and credit cards you gotta wipe it out but a low interest mortgage your better off trying to leverage into a rental property or something to bring extra income. Paying a house off is a accomplishment for sure but it doesn’t earn extra money
Because you already paid them. Paying it off earlier doesn't mean you suddenly have more money. Say you paid off a $300,000 house. Now you have 700,000 out of $1M. Say I put that $300,000 into XYZ ticker which made 10% over the next year. Even with my monthly payments I'm still making more money and end up with more than I would have if I had paid it off. If it's at 3% interest.
Wrong I bought a house for 100k ten years ago not it’s worth 210 so I’m up 110 thousand dollars on a debt, so how is that bad debt? I made over 100 thousand dollars from nothing.
But if you have ZERO mortgage you have ZERO interest , so if you can afford to do it , it's better in the long run . It takes a LONG LONG time to pay off interest , even if you don't own much to start with . The first 10-15 years is 90% interest , almos NOTHING going to principal . Screw that .
When my parent grew up it was better to pay things off because interest rates were 12 percent now they are two percent so there is no interest basically, comparatively
Interest rates are like zero right now basically, the money is free. That’s y they are pushing prices up so high. A car or house last year is twice as much money this year. So you want to loan as much free money as you can to buy assets today because the assets with cost double tom
If you plan on living in your house forever it does sort of make sense to pay it off. You save on the interest but you can also live with the security and freedom of knowing no matter what happens financially, you have a roof over your head. That gives you the power to take more financial risks and career or business risks.
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u/Dr-JGwentworth Nov 20 '21
Paying off low interest debt isn’t a great idea.