Author Topic: DH is writing final mortgage check this Friday! Should we pay off mortgage?  (Read 1388 times)


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I searched a lot of threads here as to pay off mortgage, but felt overwhelmed by the different opinions. So here I am, asking the same question :)

DH and I have 170k left on a 30 yr mortgage @ 5.15% ( I know I know), that we've had for 10 yrs. DH is very conservative and doesn't invest, so has basically all of his savings in CD (I know, I know). I preached him about the importance of having money work for him with compound interest...but he didn't listen. So he's waiting for the next market crash to go all in. :p

We've been thinking about RE to spend time more with kids. We have 2 mill+ in assets. Most of it from my side, b/c I've been investing in Vanguard and have a paid-off rental property (rent $1,500/month).

My idea is to pay off mortgage, move to a LCOL area, and pay our next small house in cash, with cash left over to invest (maybe just VIG, b/c DH is super conservative).  DH is planning to write the final check to burn the mortgage this Friday! Sounds like a done deal, except I need you guys help to validate our action. :)

DH and I have separate finances, currently I have 50K in cash. So I decide to reduce my 401K to 5% (to the employer matching %), and continue accumulating cash, to "pay DH back" P&I.

I really hope I am not missing anything?
  So we have 20 yrs remaining, and $180K remaining on mortgage.....DH and I are making 250K/yr,  the home is approximately $300K (90% of Zestimate); it is our only debt. Cars are paid off, and DH might sell his when he retires. Rental property is valued at $180K (90% of Zestimate). We have 2 children, age 7 and 8.
So Current cash flow is only about $7500 (50% off for rental maintenance/expenses/taxes/insurance budget), dividend income about $10K/yr.  We plan to have $40K annual expense when both of us retire. I plan to retire in a year, but not sure about when DH will pull the trigger.

  DH and I are both developers. I plan to start a small business writing code post retirement, but I don't imagine having any real income immediately. So, really we only have rental business as our real income. I've been reading up here about passive income, and am plan to do that ONCE one of us retires that will take us down the tax bracket. Right now, I am not considering dividend income generation. Also we are contributing 529 plan, total about 50K, but no HSA contribution yet.

  Anything else do I need to include? :)
« Last Edit: October 03, 2016, 01:25:00 PM by amberbee1999 »


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We don't have nearly enough information to make a useful, intelligent suggestion.  We know nothing about your income(s) and little to nothing about your assets.