Comments on: Should I Pay Off My Mortgage or Invest?

By: Craig

Craig — Sun, 30 Oct 2011 20:42:05 +0000

Jaspal,
Thanks for the comment.
I don’t know of anyone who paid off the mortgage and regretted it. That tells us something right there, right?

By: Jaspal Singh

Jaspal Singh — Sun, 30 Oct 2011 00:38:59 +0000

While I am not a Christian, I agree whole-heartedly with the sound, sensible and very thougtful comments to this very nice article. I also think that the responsible thing to do is to pay off the mortgage. Once it is paid off, it frees up so much more money to (1) allow a person to work less; (2) possibly retire early; (3) invest in other things; or (4) do some charitable good in this world.

Either way, being debt free giving a person freedom. The money changers and money lenders will always want to keep you in debt. Freedom comes from not being in any debt whatsoever.

By: Rinaldi

Rinaldi — Fri, 08 Jul 2011 10:20:34 +0000

In Indonesia there are currently around 40 fixed rate government bond issues with coupon ranging from 7.0 to 13.5% per annum. I would say that this bond is as good as risk-free. However the coupon will be adjusted to at what price you purchase the bond whether at discount or premium. Secondary market is available so that basically you can purchase and sell the bond as you wish.

By: Craig

Craig — Fri, 24 Dec 2010 09:51:33 +0000

Matt,
Thanks for chiming in with some great comments.
I think the stewardship issue depends on the other assets you have. Some people might have the cash/investments to cover the loan and as such it is not a spiritual or emotional burden.

By: Matt Wegner

Matt Wegner — Thu, 23 Dec 2010 12:08:35 +0000

I agree that paying off the mortgage is largely emotional, and wow, does it feel great to be completely debt free. I don’t think I agree with the statement that you’re a good steward whether you pay off the mortgage or not. Yes, you’re trying to get the best return for your money and manage the resources you have to the best of your ability. However, the Bible is pretty clear on matters of debt – it is to be avoided at all costs. That tells me I’m being a better steward when I get rid of my debts and stay debt free.

I also would say that the argument to keep the mortgage and invest instead almost never comes out mathematically, once you factor in risk & inflation vs. appreciation. You actually lose money on your house over time and the longer you keep the mortgage, the more money you lose.

Great post!

By: Mark

Mark — Tue, 02 Nov 2010 17:08:56 +0000

You’ve made some excellent points with this article. Choice A involves much less risk than choice B. I often find that most individuals who are paying down their mortgage are more financially responsible overall. Paying off debt is always a good choice, you can’t go wrong no matter what anyone suggests.

By: Craig

Craig — Wed, 30 Jun 2010 20:55:10 +0000

@Roy
The plan seems very good (not knowing a lot about your personal situation). However, the only thing I wonder about is the ‘program’. I hope it is a proven way to earn returns on your investment not some seminar program.

By: ROY STROBEL

ROY STROBEL — Wed, 30 Jun 2010 05:35:49 +0000

WHAT IS YOUR THOUGHTS ON US REFINANCING OUR HOUSE FOR $100,000.00, PAYING OFF THE CURRENT MORTGAGE OF $56,000.00 AND TAKING THE $44,000.00 THAT IS LEFT AND INVESTING IT IN A PROGRAM THAT WILL GIVE US MONEY FOR OUR RETIREMENT YEARS?

By: » Should I Pay Off My Home Mortgage Early Or Invest?

» Should I Pay Off My Home Mortgage Early Or Invest? — Thu, 03 Jun 2010 14:35:44 +0000

[...] you talk about paying off your mortgage early there are a lot of pros and cons on both sides of the equation. If I were to simply make a [...]

By: Craig

Craig — Thu, 27 May 2010 22:21:58 +0000

@Tim
Great point. I think your right that if you’ve made the types of choices that lead you to a place to consider paying off the mortgage then you’ll probably make a wise choice here. I think you make a good point about dollar cost averaging as you invest along the way. That certainly is an advantage.