Finding success! Should I pay off my primary mortgage?

1 Reply

I'm finding success with real estate!  Whoohoo!  So this begged the question about what to do with the money:  Should I look to pay off my primary mortgage on the home I and my family live in? I've had one opinion say "no" because no one is demanding that amount of money from me at the moment, but I feel as if should my real estate business be destroyed in the next market crash, I would have my property free and clear and not have to worry about THAT debt.  In some way, it is comforting to me.

I'm sure this gets asked a lot so thanks for holding back the pitchforks. 

Robert Huizar, Property Manager

Hard to say for sure without knowing your rate or term, but assuming a fixed 4% 15 or 30 yr I'd say that's too easy to beat as an ROI. I pay off mortgages often, but they are above 6%, seller financed or commercial.

Because I would rather have money in case an opportunity rolls up instead of rushing to pay down a 3.375% loan that doesn't bother me for my financials every year, I am keeping my primary mortgage. 

You are resigned to a 4% return if you pay off a 4% mortgage. I get the sleeping better at night thing, but 4%?

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