Quote:
Originally Posted by corn18
Ding, ding, ding, we have a winner! You MIGHT make more than 6% on your investments. You WILL pay X% interest on your mortgage. Hard to quantify risk, and that's why there are at least 771,347,965 threads on the financial fora asking the same question: Pay off my mortgage or invest? It's really more about emotions than math in the grand scheme of things. It does FEEL really, really good to own your house and have absolutely zero debt. But the numbers say a 2.75% fixed rate 30 year loan along with three 0% 7 year car loans comes out ahead. But that doesn't make me feel as good as being debt free.
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Agree and also wonder how many of the "I will invest the difference" really happens and I believe many end up with a 7 year loan and the money is gone to unknown places.
I won't have another car payment and also with this, the idea of having to write a $35k-$45k check (I only buy used) makes it far easier to keep what I have. Car payments made it easier to decide to go get another car. Choice there is $400 payment for the 5 year old car to $450 for a new car. Additional cost didn't make nearly the difference the big check makes.
Also add that the emergency fund recommended to keep in cash (or similar) also gets reduced as the required payments drop.