Fiology Lesson 23: Should You Pay Off Your Mortgage?

LESSON 23 : SHOULD YOU PAY OFF YOUR MORTGAGE?

This lesson assumes you currently have a mortgage on a primary residence and you are deliberating between paying it off as soon as you can, making payments for the full term, or some hybrid between the two. Numbers, psychology, and behavioral finance are all part of the equation. Because we have learned to Let Our Values Guide Our Decisions in Fiology Lesson 11, you will make a decision that works for you at this point of your journey and you will continue to revisit and reconsider over time. That is just fine. This lesson provides us with different and justifiable perspectives to consider.

Read:  Waking Up in a Paid-Off House // A Farewell to Our Mortgage  by Tanja Hester of ournextlife.com

Read:  Showdown! Should You Pay Off Your Mortgage or Invest?  by Paula Pant of affordanything.com

Read:  The Actual Math Behind Paying Down Your Mortgage vs Investing  by A Blinkin of funancials.biz

Read:  Am I Crazy for Paying Down My 2.875% Mortgage?  by A Blinkin of funancials.biz. This post is written three years after the one above it and depicts just how factors can have a variety of impacts over time in one’s own journey.

Read:  Debt Free by Forty: Why I Chose to Pay Off My Mortgage  by Physician on Fire of physicianonfire.com

Read:  The New Reason To Pay Off Your Mortgage Now  by Ashlea Ebeling of forbes.com

Take Action: Visit Mortgage Payoff Calculator – Extra Payments. Familiarize yourself with the calculator by inserting your loan amount and the time duration for which you could pay off your mortgage. You will see how much a monthly additional payment would be and the interest savings for your assertiveness. During this exercise try to imagine what it would feel like to no longer have a mortgage payment and to possibly be 100% debt-free. Is that worth a few percentage points difference you may have earned if you kept the mortgage payments the same and invested additional funds in a stock market index fund?

Additional Resources:

Read:  Paying Off the Mortgage is a Mistake I’ll Never Regret  by Rob of mustardseedmoney.com on physicianonfire.com

Read:  Is Now the Time to Pay Down Your Mortgage?  by Allan Roth of aarp.org

Read:  8 Compelling Reasons to Pay Off Your Mortgage Early  by Andy Hill of marriagekidsandmoney.com

Quote: “Every day is a journey, and the journey itself is home.” – Matsuo Basho

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