I think it’s the starting balances. The balance on the house is $452k at 2.94% while investment would essentially start at 0. So currently I’m paying about $1100/month in interest and $800 to principal on the house. It would take north of $250k invested to cancel out that interest payment. Thanks for the reply!Something seems off with that math... Funds invested earning 7% should exceed the paying off a sub-3% loan...This is how I was originally leaning but my tune changed when I plugged the numbers into David Ramsey mortgage payoff calculator and an investment calculator. If I pay the extra $3800 per month I would end up saving $148k in interest and be debt free in 7 years. If I invest that same $3800 into a fund earning 7% I only make 90k in interest in 7 years.I don't think I would do the above with a sub-3% mortgage.
I think I’ve talked myself into paying off the house. Lol
That said, we paid our house off early. Mathematically, it might not have been the best decision. But we sleep well with it.
Statistics: Posted by Lucky72 — Sun Jul 21, 2024 7:08 am — Replies 14 — Views 943