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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Shariff119 on July 17, 2018, 03:20:27 PM

Title: Pay off mortgage..or keep cash to invest.
Post by: Shariff119 on July 17, 2018, 03:20:27 PM
Hello all.  Long time lurker first time in the forum.  Need some advice.  500000 in cash .. different investments.  No other debt except mortgage.  Income.  Wife works but will be reducing hours (and pay ) soon.  I have a pension that includes healthcare.  With my pension ..healthcare...wife's soon to be reduced pay...we will do fine financially.  Should we take 160000 to pay off our mortgage that has 20 yrs at 850 amonth (5.2) interest.  Or.. refinance immediately.  Be gentle. this is very new to me.  Thanks!!

Title: Re: Pay off mortgage..or keep cash to invest.
Post by: wjinghlw on July 17, 2018, 04:19:36 PM
What is your mortgage rate currently?


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Title: Re: Pay off mortgage..or keep cash to invest.
Post by: marty998 on July 17, 2018, 05:13:04 PM
How old are you? Are you close to retirement / taking your pension now?

Do you have $500,000 all in cash or all in investments or a combination of both?

Need a lot more info...
Title: Re: Pay off mortgage..or keep cash to invest.
Post by: DreamFIRE on July 17, 2018, 05:36:17 PM
What is your mortgage rate currently?

He said 5.2.
Title: Re: Pay off mortgage..or keep cash to invest.
Post by: use2betrix on July 17, 2018, 05:53:06 PM
At 5.2%, with how strong the market has been I’d lean towards saying to pay it off, especially if you’re older. A GUARANTEED 5.2% isn’t bad. Had it of been ‘09-‘12, I’d be singing a different tune.

There’s tons of arguments either way, but that’d be my safest bet with the limited information in your thread.
Title: Re: Pay off mortgage..or keep cash to invest.
Post by: DS on July 18, 2018, 09:12:25 AM
What is your mortgage rate currently?

He said 5.2.

Or she, etc. :)
Title: Re: Pay off mortgage..or keep cash to invest.
Post by: Taran Wanderer on July 18, 2018, 09:16:04 AM
At 5.2%, with how strong the market has been I’d lean towards saying to pay it off, especially if you’re older. A GUARANTEED 5.2% isn’t bad. Had it of been ‘09-‘12, I’d be singing a different tune.

There’s tons of arguments either way, but that’d be my safest bet with the limited information in your thread.

Yes, this.
Title: Re: Pay off mortgage..or keep cash to invest.
Post by: frugaliknowit on July 18, 2018, 01:49:07 PM
If you are within 15 years of retirement/Fireing, yep, I'd pay it off in a heartbeat.