Pay off a loan?

[Chocaholic]

I say, pay it off and close that little chapter. I hate owing money and sleep better when I don’t.

[sc_rufctr]

Originally Posted by Chocaholic

I say, pay it off and close that little chapter. I hate owing money and sleep better when I don’t.

I generally agree but I don't mind owing money on a "renter".

Credit Cards? No thanks...

[bugstrider]

Mrs Bugs n I are working hard to pay the mortgage off. Would be ideal to roll into retirement with no house payment. We’re tryin

Paid the vehicles off.


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[BK911]

Originally Posted by bugstrider

Mrs Bugs n I are working hard to pay the mortgage off. Would be ideal to roll into retirement with no house payment. We’re tryin

Paid the vehicles off.


Sent from my iPhone using Tapatalk

Good plan.
I almost double my mortgage payments so the house in paid off in 7.5 years when I retire at 62.
Now I am thinking of dumping the extra $1k to the mortgage to pay the house of even earlier.
So instead of having the house paid off when I retire, I will retire when the house is paid off!
Quick math says ~5 years to go if I pay an extra $1k on top of the extra I already pay.

[flatbutt]

Originally Posted by BK911

Good plan.
I almost double my mortgage payments so the house in paid off in 7.5 years when I retire at 62.
Now I am thinking of dumping the extra $1k to the mortgage to pay the house of even earlier.
So instead of having the house paid off when I retire, I will retire when the house is paid off!
Quick math says ~5 years to go if I pay an extra $1k on top of the extra I already pay.

Exactly what I did when the '06 was paid off. I threw the payment at the equity loan I was carrying. IIRC I saved around 20K in interest. I paid off $100K in 8 years instead of 15 but I was throwing other money at it too like tax refunds.

[KFC911]

Being debt free is a great stress avoider when opting to retire (mebbe even early?) or if corporate job cuts blindside you outta the blue .... but that should NEVER happen .... plan for it .

[ckcarr]

I watch this guy a lot on YouTube. Seems to give decent advice.
https://www.youtube.com/@HolySchmidt

In one of these episodes he talks of paying off your mortgage versus letting it ride, as the dynamic has changed with 2.5 to 2.75% interest on many loans. He combines that with your remaining "good" quality of life years remaining..

[ErVikingo]

Originally Posted by BK911

Refinanced my truck a few years ago to payoff my retirement cabin lot.
Still owe just under $10k on the truck at around 2.5% interest.
Not sure what my monthly payment is, but I pay $1k every month.
So it will be paid off by the end of the year.
Thinking to just pay it off to get it over with, but at 2.5% it is almost free money.
Quick math says the interest is *only* $20 per month.
But $10k in the bank isn't making $20 per month!
I really wouldn't miss the $10k and do not need to buy anything else with it.
So what do you smart fellers think?

Only banks make money on loans. With the current market, I would pay it off

This is my personal opinion and not the opinion of my firm. (Yes I have to use that disclaimer)

[sugarwood]

Originally Posted by ckcarr

He combines that with your remaining "good" quality of life years remaining..

What things did he say about that topic ?

[sugarwood]

Dont pay off loan

1) Invest $10k in meme stock or crypto
2) Watch meme drop to $5k
3) ????????
4) Profit

[FA-18C]

Did this for two cars last month. Wrung my hands, cash in bank, or the relief of no payments. Chose to pay both off. The pisser is that with only a small amount left on our mortgage, and no other debt, our credit utilization as a % available went down, and correspondingly, our credit dropped a couple of points. Kind of made me squint and whine, but of course credit scores and the rules are controlled by the banks in some way or shape.

Peace of mind is hard to put a number on.