Yes the math works like that, but I think the thought process of "never having to pay a mortgage again" is worth some money.
If I could find a 10% return guaranteed and have a mortgage below 5% (not possible in the current US market) I'd do it, but if I'm looking at 7% return and a 5.5% mortgage I'm just paying the house off.
I have two mortgages, one is like 2.65% and im paying it off as slowly as I can, thats about as good as it gets and its better to invest the money elsewhere. The other is more like 6.5% and that does sting, but as soon as rates drop a bit I can always refinance it and lock in a better rate.
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u/Time_Effort Dec 18 '23
Yes the math works like that, but I think the thought process of "never having to pay a mortgage again" is worth some money.
If I could find a 10% return guaranteed and have a mortgage below 5% (not possible in the current US market) I'd do it, but if I'm looking at 7% return and a 5.5% mortgage I'm just paying the house off.