Is it wise to pay off your mortgage early? The debate about when to pay off a mortgage seems to be a popular one in the financial world. Some prevailing financial personalities abhor debt and suggest paying it off at all cost. Others (including many finance professors & rich dad) seem to enjoy low-rate mortgages, and fundamentally love the idea of a leveraged debt position. I’m not really sure there is a right or wrong answer in the debate, but I know we have chosen a side and I’m pretty happy with where we currently sit.
About three years ago we found a little house we liked in a great southern town. We saved pretty aggressively after we got married so we had a good down payment to go with a small mortgage. We fixed up the little house and it has been a great place to live as our family has begun to multiply. Although we chose a traditional 15 year mortgage, we realized if we put a little extra towards the house we could pay it off pretty quickly. Once the idea was planted, we focused, and ended up paying it off much faster than our initial estimates. So, why did we pay off the house? Why not invest the money in the market instead? Is it ever smart to pay off low-interest debt? Continue reading Why We Paid Off Our Mortgage at 30