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Inmate Central Inmate Central, where civil and family-friendly discourse about off-audio topics (other than religion and politics) is welcome. |
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In Reply to: Paying off mortgage early in today's environment posted by Wojciech on April 26, 2022 at 06:15:08:
...that's the cheapest money that you're going to be able to borrow for a LONG time, with the way things are headed. If you've got a FIXED low-interest mortgage, just pay it out as scheduled.
Yes--I know that cash holdings aren't making any money--right now. But you're NOT going to be able to borrow money at that rate for quite some time.
What I would do (if you have the option) is to secure a FIXED low-rate line of credit against your current equity. Then, if you want/need a new car, home-repair/remodel, or money for a kid or grandkid going to college, you won't be borrowing at 12+%.
I bought CDs (back during the Carter/Reagan years) at 17% return. We're headed there again, and your "paid-off" house might be worth a lot less next year than it is now.
Yes, it is theoretically great to be "debt-free", but not always the most fiscally-responsible approach in the long-run. I'll carry the low-interest debt to have the cash on-hand to buy whatever I want when borrowing interest rates are climbing. That cash may actually make you money--it did for me, and still does.
DISCLAIMER--I am not a financial advisor--I am a scientist, but my opinion is based on experience, but solely an opinion.
"And today is for sale and it's all you can afford. Buy your own admission. The whole things got you bored. Well the Lord chooses the good ones, and the bad ones use the Lord"--a very dear friend for decades Michael Stanley (Gee)--RIP
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Follow Ups
- Nope... - dark_dave56 04/26/2207:06:37 04/26/22 (1)
- Sound advice - G Squared 18:01:42 04/26/22 (0)
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