Primary Residence Mortgage

6 Replies

I have a few paid off rental properties and I have a mortgage for my primary residence. I'm thinking to put $50K toward my mortgage to lower my payments a bit and save some money in the long run.

Could you tell me please if this the right approach? Or there are some benefits or tax deductions of having the mortgage I can take advantage of? Please let me know.

You’re paying off a 4% mortgage, plus losing some tax incentives. So you’re actually paying off something like a 2.5% loan.

I’d rather take that 50K and do something with more long-term growth.

Originally posted by @Mike McCarthy :

You’re paying off a 4% mortgage, plus losing some tax incentives. So you’re actually paying off something like a 2.5% loan.

I’d rather take that 50K and do something with more long-term growth.

 ok. something else like buying another property? In Florida, it's very hard to find nowadays anything worth buying under $100K

Originally posted by @Mike McCarthy :

You’re paying off a 4% mortgage, plus losing some tax incentives. So you’re actually paying off something like a 2.5% loan.

I’d rather take that 50K and do something with more long-term growth.

 Please give some examples, of long-term growth things

Well, this is primarily a REI forum, so go find a $200K rental that can cashflow and put down $50K and finance the rest.

Index funds are showing 7%+ growth over 10-year periods. Stock market/mutual funds typically do better (with some swings of course). Note investing, I'm sure there are others, though I'm not well-versed.

@Wakes Andre

It depends on what your goals are.

If your goal is to live debt-free. Then go ahead and pay off the mortgage.
Maybe you are generating enough cash-flow from your current rental properties. If this is the case - then there may no real need to acquire more rental properties.

If your goal is to acquire additional rental properties - then the 50K may be better used as a down payment on your next investment property.